Regency Centers to bring new deal to preferred market; Aegon's recent 8% $25-par notes list

By Stephanie N. Rotondo

Portland, Ore., Feb. 6 - The preferred stock market, along with the rest of the market, was suffering from a "Super Bowl hangover," a trader said Monday.

Volumes were unusually light, even as Greece's debt talks were poised to fall apart.

"I'm surprised we're not seeing more of a reaction on the Greek talks faltering," a trader said. He posited that investors were taking a wait-and-see approach. But he noted that once concrete news comes out, it will surely have an impact on markets.

"If they cannot get a bond swap done and they have to do a real default, that would certainly move the markets," he said, adding that he doesn't believe that is already priced in.

"It'll cause some ripples," he said.

In primary dealings, Regency Centers Corp. announced plans for a new issue. The deal was said to be "doing well," though traders saw little in the way of markets for the issue.

Meanwhile, Aegon NV's $500 million issue of 8% $25-par notes officially listed on the New York Stock Exchange on Monday. Though a market source said the issue was essentially flat on the day, he added that it had "clearly done better" of late.

In the secondary, Royal Bank of Scotland Group plc continued to attract attention. However, unlike last week when the preferreds were slowly grinding higher, the paper was on the weaker side on Monday.

Regency heralds new deal

Regency Centers plans to sell series 6 cumulative redeemable perpetual preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Monday.

Price talk is around 6.625%, according to a trader.

"It looks fine," he said. "Just another REIT deal that's getting packed away to retail and doing well."

Another market source noted that the issue's structure includes a change-of-control feature, something that has "become increasingly common among REITs."

Sources saw little in the way of markets for the new securities.

The company intends to list the preferreds on the New York Stock Exchange under the symbol "REGPF."

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be moved to the company's operating partnership, which will use the funds for general corporate purposes, including redeeming other preferred securities.

Regency is a Jacksonville, Fla.-based real estate investment trust.

Aegon new issue lists

Aegon priced a $500 million issue of 8% $25-par noncumulative subordinated notes due Feb. 15, 2042 on Jan. 24, and the deal officially listed on the NYSE on Monday. The symbol is "AEK."

A market source said the issue closed steady at $24.95 but noted that it has "clearly done better" than it had when it first hit the marketplace.

When the deal was priced, it was upsized from $250 million. The notes also came at the low end of price talk.

Proceeds are being used for general corporate purposes.

The life insurance, pension and investment products business is based in the Hague, the Netherlands.

RBS active again

Royal Bank of Scotland issues dominated trading on Monday and ended with a weaker tone.

The 6.4% series M noncumulative dollar preference shares (NYSE: RBSPM) - a currently non-paying issue with a "likelihood of paying within the year," a source said - fell a nickel to $15.82. The 6.75% series Q noncumulative dollar preference shares (NYSE: RBSPQ) lost 4 cents to end at $26.45, and the 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) closed flat at $17.70.

RBS is an Edinburgh-based bank, currently majority owned by the U.K. government.

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