Midday Commentary: CoreSite prices, frees, trades at par; Seaspan expected to 'do fine'

By Stephanie N. Rotondo

Phoenix, Dec. 5 - CoreSite Realty Corp.'s new $100 million of 7.25% series A cumulative redeemable perpetual preferred shares were getting a lot of play, a trader said Wednesday.

"It's taking up most of the broker chatter," the trader said, seeing a par bid for paper at midday.

The trader also noted that the issue had freed to trade shortly after pricing early Wednesday.

However, the trader was "not seeing a lot of action" in Seaspan Corp.'s proposed new issuance of series D cumulative redeemable perpetual preferreds.

"I'd imagine it will do fine with the 8% coupon," he said, noting that there have not been many deals with such high dividends of late.

Meanwhile, "retail exhaustion" was possibly partly to blame for a lackluster performance in Kimco Realty Corp.'s $175 million issue of 5.625% class K cumulative redeemable perpetual preferreds.

The issue, which priced Nov. 28, was seen at $24.65 as of midafternoon.

The less-than-stellar performance was notable, given that Kimco's deals tend to do well. A 5.5% issue that came in July "traded fine," a trader said. "It was trading at or above par until the announcement of the new one."

But with the 5.5% preferred issue trading at a 5.6% yield, "why wouldn't you buy the new one?"

In new listings, Entergy New Orleans Inc.'s $25-par 5% first mortgage bonds due 2052 hit the New York Stock Exchange.

The ticker symbol is "ENJ." The $30 million issue came Nov. 26.

The notes were trading at par at midday, versus an opening level of $24.97.

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