Midday Commentary: Comcast plans issuance of notes due 2061; Kimco's new deal falters

By Stephanie N. Rotondo

Phoenix, Nov. 29 - The primary preferred stock market continued to churn out deals Thursday, as Comcast Corp. announced plans for an offering of senior notes due 2061.

"I was kind of shocked they brought this deal," a trader said, noting that it "seems a little aggressive on the yield."

Price talk is 5% to 5.125%, and the size is expected to be about $250 million.

The issue was trading at $24.63 bid, $24.72 offered in the gray market as of midday, the trader said.

Despite his shock, the trader said that companies might be looking at the federal government's plan to continue buying up Treasury bonds as a positive, as it would keep interest rates at lower levels. Additionally, if a "fiscal cliff" deal can be reached, that might encourage issuers to jump into the market.

If a deal can't be reached, however, it could mean a sell-off, he said.

Meanwhile, Kimco Realty Corp.'s $175 million of 5.625% class K cumulative redeemable perpetual preferred stock - a deal that priced Wednesday - was offered at $24.57 at midday.

"Those are a little weak," a trader commented.

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