Preferreds muted; Aimco plans to issue preferreds; American Homes 4 Rent trades flat

By Christine Van Dusen

Atlanta, May 9 - Preferred stock activity was limited on Friday as Apartment Investment and Management Co. (Aimco) sought to issue cumulative preferred stock via Wells Fargo Securities LLC, a trader said.

The deal was expected to carry a coupon in the 7¼% to 7½% area.

"It's a small company," the trader said. "They have two issues out already, including the Z series, which has a 7% coupon. The price was $24.25, brought at a discount. We may see some selling pressure on that."

Otherwise, all was quiet in the primary market on Friday.

In trading of preferreds, Principal Financial Group's 6.518% series B non-cumulative perpetual preferred stock ended the day near $25.90, up about 14 cents on 218,206 shares traded.

Citigroup Inc.'s 8 1/8% depository shares, series AA, non-cumulative preferred stock moved up 7 cents to $29.02 on volume totaling 188,664.

And Deutsche Bank Contingent Capital Trust III's 7.6% trust preferred securities - quoted flat early in the day at $27.55 - finished the session up 2 cents at $27.57 on volume totaling 142,786.

Also on Friday, American Homes 4 Rent's recent issue of 5.5% series C preferred shares was spotted in the morning at $24.80, slightly lower than most of Thursday but flat to that day's close, a trader said.

The notes - via bookrunners Morgan Stanley, Raymond James & Associates and Jefferies - opened at $24.82.

Safe Bulkers Inc.'s 8% series C cumulative redeemable preferreds - a deal that came April 30 - listed on Friday and traded at $25.14 on about 76,055 shares traded.

On Wednesday, the issue from the Athens, Greece-based drybulk shipping company traded at $25.05 bid, $25.15 offered not long before the market closed for the day.

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