KKR Financial, Homeowners Choice free up; National Bank of Greece firms amid Postbank news

By Stephanie N. Rotondo

Phoenix, Jan. 11 - It was a flat day for preferred stocks on Friday as "market activity really died out," according to a market source.

He attributed the subdued trading to a focus on common stocks, particularly in the financial sector on the back of earnings from Wells Fargo & Co.

"It appeared that the market didn't respond that favorably" to the numbers, the source said. On the common side, many U.S. banks saw the market value's slipping, which "spilled over" into the preferred realm.

Among recent issues, KKR Financial Holdings LLC's $325 million of 7.375% series A LLC perpetual preferreds - a deal that priced on Thursday - freed to trade on Friday, as did Homeowners Choice Inc.'s new $35 million issue of 8% $25-par senior notes due 2020.

In the secondary arena, National Bank of Greece SA's $2.25 noncumulative series A preference shares were on the firm side.

The gains came as the Greek bank, along with two other of the nation's top lenders, were announced to be forgoing formal bids for troubled fellow banking institution Hellenic Postbank.

KKR, Homeowners Choice free

KKR Financial Holdings' new 7.375% series A LLC preferreds were "sitting around par," a trader said at midday, quoting the paper at $24.97 bid, par offered.

The trader noted that the issue had freed from the syndicate after pricing on Thursday.

At the close, another market source said the paper was "not so good" at $24.92 bid, though the $24.97 offer was "not so bad."

Homeowners Choice's new 8% notes due 2020 also freed up, according to the trader. That deal also priced on Thursday.

The trader saw a $24.80 bid for the notes at midday.

Greek bank gets a boost

National Bank of Greece's $2.25 noncumulative series A preference shares (NYSE: NBGPA) were firming up as the Greek bank said it did not plan to make a formal bid for fellow bank Hellenic Postbank.

The shares climbed 32 cents, or 3.6%, to $9.22.

Late Thursday it was learned that National Bank and Eurobank - which are in the process of merging - as well as Alpha did not intend to enter binding bids for Postbank. Postbank is 44% government owned.

Because none of the banks want to throw their hats in the ring, Postbank will be split into a viable business that contains the performing parts of the bank and a non-viable portion that will be liquidated.

For its part, National Bank had sought to delay the bidding due to their ongoing merger process. Both institutions have small stakes in Postbank and had originally expressed interest in bidding for the troubled firm.

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