Midday Commentary: Ventas Realty launches note offering; JPMorgan lists; Fannie, Freddie moving up

By Stephanie N. Rotondo

Phoenix, Feb. 28 - The last day of February saw another new issue hit the preferred stock tape, as Ventas Realty LP announced plans for a sale of at least $150 million of senior notes due 2043.

Price talk was originally 5.5% to 5.675% but was revised to around 5.5%, according to a trader.

"It really means nothing," the trader said of the revision. "They always price at the low end."

"I don't think I've ever seen a preferred out of them before," he added.

The trader saw the issue at $24.70 bid in the midday gray market, down from an earlier high of $24.78 bid.

In other recent issues, LaSalle Hotel Properties' new $100 million of 6.375% series I cumulative redeemable preferreds - a deal that priced Wednesday - was "holding up just fine," a trader reported. He quoted the issue at less 20 cents bid, less 8 cents offered.

And, J.P. Morgan Chase & Co.'s $850 million issue of 5.45% series P noncumulative perpetual preferreds listed on the New York Stock Exchange on Thursday.

The deal priced Jan. 29. The ticker symbol is "JPMPA."

Paper was trading up a nickel at midday to $24.93.

In the secondary, a trader noted that Fannie Mae and Freddie Mac preferreds have been on the rise of late. He attributed the gains to an improving housing market and not anything political.

Also, the trader said that there was "a little more action" in Sears Holding Corp.'s unlisted securities - a 7% note due 2042 and a 7.4% note due 2043.

The trader said "bad earnings" were the cause of the increased interest.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.