Recent deals find 'decent support'; Goodrich brings 10% preferreds; called issues busy

By Stephanie N. Rotondo

Phoenix, April 4 - Recent new preferred issues were receiving "decent support," a trader said Thursday.

"Almost all of these things have been hanging right around the $24.75 to $24.80 mark," he said.

As for Thursday business, Goodrich Petroleum Corp. said it was planning an offering of series C cumulative preferreds. At the close, a market source said $100 million preferreds had been priced at par to yield 10%.

And, as to the secondary market's dealings, a trader said that the space was seen "up slightly with the Treasury rally, with only a few exceptions."

But by the end of business, a market source said the overall market was "pretty flat," with "less than a half-a-cent change."

Goodrich prices preferreds

Early in the day's session, Goodrich Petroleum said it was selling series C cumulative preferreds.

Price talk was around 10%, a trader said.

"That's pretty nice," he said of the coupon, "if you like companies that don't make any money."

Goodrich has had "negative earnings" for some time, he noted.

The trader also said that he had not seen the deal "officially launch" as of midday. He said the paper was at $24.60 bid "before it's even brought out, which is pretty common."

After pricing, a source said the paper was trading in a range of $24.65 to $24.75 in the gray market.

The source also expressed squeamishness about the deal.

"It will give them temporary liquidity... until another problem comes up," he said.

Goodrich Petroleum is a Shreveport, La.-based independent oil and natural gas company.

New deals find support

NorthStar Realty Finance Corp.'s 8.5% series D cumulative redeemable preferreds - a $175 million issue that priced Wednesday and freed up late Thursday - was seen in a $24.80 to $24.90 context at midday.

"That 8.5% coupon should make that one popular amongst the retail crowd," a trader remarked.

After the bell, a market source pegged the issue at $24.77 bid, $24.87 offered.

Digital Realty Trust Inc.'s $225 million issue of 5.875% series G cumulative redeemable preferreds - a deal that came Tuesday - was meantime seen trading around $24.75 early in the session. At the close, the issue was seen at $24.82.

In other recent deals, DDR Corp.'s $150 million of 6.25% class K cumulative redeemable preferred stock - a deal that priced March 25 - was quoted at $24.85 bid, $24.90 offered at midday.

Among $25-par "baby bonds," Fifth Street Finance Corp.'s $75 million of 6.125% notes due 2028 were pegged at $24.80 bid, $24.85 offered. Main Street Capital Corp.'s $80 million of 6.125% notes due 2023 were seen in a $24.80 to par context.

"There's not a lot of action," a trader said of the latter issue. "There's probably a manager out there buying whatever since it's such a tiny deal."

Fifth Street came March 27. Main Street priced March 26.

Called issues trade actively

Recently called issues from Bank of America Corp. and Lexington Realty Trust have been moderately active of late.

Bank of America's 8.2% series H noncumulative preferreds was called on March 14 for May 1. The bank's Merrill Lynch-linked 8.625% series 8 noncumulative preferreds were also called for May 28.

The 8.2% preferreds (NYSE: BACPH) ended the day down a penny at $25.49, while the 8.625% securities (NYSE: BMLPQ) closed unchanged at $25.51.

Lexington's 7.55% series D cumulative redeemable preferreds were meantime called on March 19 for April 19. The shares (NYSE: LXPPD) finished the day at $25.08, unchanged.

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