Midday Commentary: Prudential launches note offering; PS Business gains; LaSalle lists on NYSE

By Stephanie N. Rotondo

Phoenix, March 7 - A preferred stock trader said that a new deal from Prudential Financial Inc. would "hopefully [turn] the large-issue new issue market back on again."

Prudential said it would sell at least $250 million of the $25-par junior subordinated notes due 2053 on Thursday. Price talk was around 5.75%.

"They'll probably push that to 5.7%, or even 5.65%," the trader said.

The trader pegged the notes at $24.80 bid, $24.85 offered in the midday gray market. Earlier in the session, he had seen the paper at $24.75 bid, $24.82 offered.

Meanwhile, PS Business Parks Inc.'s new $100 million issue of 5.7% series V cumulative preferreds were seen at $24.90 bid, $24.98 offered.

The deal priced Tuesday and freed to trade on Wednesday.

In other recent deals, LaSalle Hotel Properties' $100 million of 6.375% series I cumulative redeemable preferreds - a deal that priced Feb. 27 - listed on the New York Stock Exchange under the ticker symbol "LHOPI."

The preferreds were trading at $24.82 at midday, down from opening levels of $24.86.

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