Interstate Power, Sabra Health price; Fannie, Freddie improve; Goldman, JPMorgan mixed

By Stephanie N. Rotondo

Phoenix, March 14 - The new issues kept coming on Thursday as Interstate Power & Light Co. and Sabra Health Care REIT Inc. announced plans for preferred stock offerings.

Interstate said it would issue a minimum of $100 million of series D cumulative perpetual preferreds. A trader said the deal would likely be upped to $150 million.

Price talk was 5.25% to 5.375%, he said.

"They'll probably push the yield to 5.125%," he added.

In fact, the yield was pushed to 5.1% and the sized increased to $200 million.

Sabra meantime said it would sell at least $50 million of series A cumulative redeemable preferreds.

That issue was being talked around 7.25%. After the bell, a trader said $125 million preferreds were being sold at 7.25%.

In the secondary, a trader said that Fannie Mae and Freddie Mac preferreds were on the rise during Thursday's session. The gains were attributed to an article in The Wall Street Journal that said a privatization of the mortgage firms would not be ideal, given that they are such "cash cows," the trader said.

After the market closed for the day, news came out regarding the Federal Reserve's recent stress test-results. It was reported that Goldman Sachs & Co. and J.P. Morgan Chase & Co. were told to improve their capital plans, as the current ones were too weak.

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