Market quiet ahead of holidays; Kayne Anderson nears par; Citi, Boston Properties list

By Stephanie N. Rotondo

Phoenix, March 28 - Thursday was the last trading day of the week, given the upcoming Easter holiday, and as was expected, the preferred stock market was on the quiet side.

"It's just dead," a trader said.

Even the week's newly priced issues were not all that active, though the trader did see Kayne Anderson MLP's $110 million issue of 3.5% series F mandatory redeemable preferreds at $24.95.

That issue came on Tuesday.

In other recent deals, Citigroup Inc.'s 5.8% series C noncumulative preferreds listed on the New York Stock Exchange on Thursday, as did Boston Properties Inc.'s 5.25% series B cumulative redeemable preferreds.

Elsewhere in the secondary market, Royal Bank of Scotland Group plc preferreds continued to be on the active side, just one day after the Bank of England said the nation's financial institutions had a combined £25 billion capital shortfall.

However, after all the issues lost ground on Wednesday, the preferreds were mixed as they finished off the week.

The 6.08% noncumulative guaranteed trust preferreds (NYSE: RBSPG) rose 57 cents, or 2.72%, to $21.55.

The 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) dropped 3 cents to $24.36.

Citi, Boston Properties list

Citigroup's recent 5.8% series C noncumulatives hit the NYSE on Thursday. So did Boston Properties' 5.25% series N cumulative redeemable preferreds.

Citi's preferreds (NYSE: CPC) were down a nickel at $24.90. Boston Properties' securities (NYSE: BXPPB) were at $24.97, up from an opening level of $24.91.

Citi priced the $500 million issue on March 19. Boston's $200 million deal came March 18.

Old Second TruPS active

Old Second Bancorp Inc.'s 7.8% cumulative trust preferreds (Nasdaq: OSBCP) were busy, though on no fresh news.

The issue was at $9.09 at midday. By the end of business, the preferreds had gained 18 cents, or 1.94%, ending at $9.27.

A trader noted that the $10-par securities "have a lot of dividend to them," given that the company has not paid a dividend in over three years. He also said that "some guy has put a lot of money into them," recently buying up all of the company's TARP preferreds at a discount.

Investors could be speculating that the recent investment is a signal of a takeover or some other event that could be a boon for preferred holders - i.e., something that would require the company to pay off the preferreds, including all of the accrued dividends.

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