Pennsylvania REIT’s new deal comes upsized; Citigroup, Schwab trade actively on earnings

By Stephanie N. Rotondo

Seattle, Jan. 18 – The preferred stock primary market had a new deal on Wednesday, a $150 million issue of 7.2% series C cumulative redeemable preferreds from Pennsylvania Real Estate Investment Trust.

Price talk on the non-rated deal was in the 7.375% area, according to a market source. The deal came upsized from $75 million.

A trader said he saw the issue at $24.80 bid in the early gray market.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies, J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. ran the books.

Part of the proceeds from the deal could be used to redeem some or all of the 8.25% series A cumulative redeemable preferreds (NYSE: PEIPrA). In response to that, the series As were up 13 cents at $25.43.

In the secondary, Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferreds (NYSE: CPrN) were on the active side after the bank reported its quarterly results.

The profit of $1.14 per share beat expectations, though revenue of $17.01 billion missed forecasts.

The preferreds were steady at $26.00.

Analysts had predicted EPS of $1.12 on revenue of $17.3 billion.

Meanwhile, Charles Schwab Corp.’s 5.95% series D noncumulative perpetual preferreds (NYSE: SCHWPrD) were also busy on earnings, closing off 2 cents at $25.51. The paper was up 3 cents to $25.56 in early dealings.

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