Preferreds close out week stronger as Fed meets; RAIT’s $25-par senior notes list on NYSE

By Stephanie N. Rotondo

Phoenix, Aug. 22 – Preferred stocks were lightening up slightly in early Friday trading but came back to end with a firm tone.

The Wells Fargo Hybrid and Preferred Securities index finished the day up 6 basis points.

Investors were keeping an eye focused on the annual Federal Reserve meeting in Jackson Hole, Wyoming, as Fed chairman Janet Yellen said that declining unemployment rates were not sufficient to prove economic growth.

Based on her view, monetary policymakers should not focus solely on jobs numbers but should instead take a more “pragmatic” approach.

RAIT Financial Trust’s $70 million of 7.125% $25-par senior notes due 2019 began trading on the New York Stock Exchange on Friday.

The deal came Aug. 11. The ticker symbol is “RFTA.”

The notes ended the day at $24.88, the day’s high tick.

Earlier in the session, a trader said the issue was in a $24.75 to $24.85 range.

Deutsche Bank Securities Inc., Barclays, Keefe Bruyette & Woods and Credit Suisse Securities (USA) LLC were the joint bookrunners. Senior co-managers were Ladenburg Thalmann, MLV & Co. LLC and William Blair & Co.

Meanwhile, CoBank announced a redemption of its 11% series D noncumulative perpetual preferreds (OTCBB: CBKAL).

The $50-par issue will be called Oct. 1 at par plus accrued dividends.

The preferreds last traded at $52.50.

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