Midday Commentary: Saratoga expected to price Thursday; recent issues firm as new month begins

By Stephanie N. Rotondo

Phoenix, May 1 - A preferred stock trader was surprised that no new issues had been announced on Wednesday.

"I thought we were going to hear another deal today," he said.

He did opine that a deal announced Monday from Saratoga Investment Corp. - an offering of up to $40.25 million of $25-par notes due 2020 - would price on Thursday.

In other recent deals, U.S. Bancorp's $500 million of 5.125% series H noncumulative perpetual preferreds were seen at $25.10 early in the day's session. The deal priced Monday and freed up on Tuesday.

Also priced Monday and freed the next day were Zions Bancorporation's $100 million issue of 5.75% series H fixed-rate noncumulative perpetual preferreds. That issue was pegged at $24.72 bid, $24.80 offered at midday.

The preferreds priced via an online auction on Monday.

BB&T Corp.'s $450 million of 5.2% series G noncumulative perpetual preferreds were meantime at $24.92, while CYS Investments Inc.'s $200 million of 7.5% series B cumulative redeemable preferreds were at $24.90.

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