Midday Commentary: KKR Financial joins primary calendar; Duke, TravelCenters free up

By Stephanie N. Rotondo

Phoenix, Jan. 10 - New issues continued to come out in the preferred stock arena on Thursday as KKR Financial Holdings LLC announced a new perpetual offering.

The San Francisco-based finance company said it would issue series A preferreds, with talk originally at 7.625%. Talk was then revised to 7.375%, according to a trader.

"So they tweaked it down quite a bit," he said.

Before the price revision, paper was trading at "par or above" in the gray market, the trader noted. Though he had not seen any markets post-revision, he assumed the price could come in a little.

Meanwhile, Duke Energy Corp.'s new $500 million of 5.125% $25-par junior subordinated notes due 2073 freed from the syndicate on Thursday.

The deal priced Wednesday.

A trader saw the issue at $25.25 in midday trading.

And, TravelCenters of America LLC's recent $100 million of 8.25% $25-par senior notes due 2028 had also freed up after pricing Tuesday.

But that paper had slipped a bit, being pegged at $24.67 at midafternoon.

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