Market firm; Seaspan to price $25-par notes; Global Geophysical files for bankruptcy

By Stephanie N. Rotondo

Phoenix, March 26 - Preferred stocks were inching up in midweek trading.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points as of mid-morning, climbing to 20 bps higher by the bell.

Seaspan Corp. brought a deal to the primary market, announcing an offering of $25-par notes due April 2019.

Price talk is 6.25% to 6.5%, a trader said, adding that he had not seen any gray market quotes for the paper.

Another market source said the deal had not yet priced by Wednesday's close.

"Supposedly, the deal is a blowout," he said, noting "lots of demand."

Sterne Agee & Leach is the bookrunner. BB&T Capital Markets, DNB Markets, Incapital, Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., Wunderlich Securities Inc., Maxim Group LLC, National Securities Corp. and Santander are the co-managers, according to a prospectus filed with the Securities and Exchange Commission.

The company's existing 8.25% series E cumulative redeemable preferreds (NYSE: SSWPE) were trading off 15 cents to $25.47 early in the day. By the end of the day, the issue was down 11 cents at $25.51.

As for the company's other preferreds, the 7.95% series D cumulative redeemable preferreds (NYSE: SSWPD) dropped 19 cents to $25.26 and the9.5% series C cumulative redeemable preferreds (NYSE: SSWPC) lost 35 cents, or 1.27%, to close at $27.30.

The trader also remarked that he was hearing at least two new deals were slated to come next week, though he did not have any specific names.

In secondary trading, Global Geophysical Services Inc.'s 11.5% series A cumulative preferreds (NYSE: GGSPA) were weakening as the company announced it had filed for bankruptcy.

The preferreds were down 54 cents, or 11.02%, at $4.36.

A trader noted that the issue priced Dec. 6 at a discounted price of $23.00 per share.

Last week, the company said it would have to restate several years of earnings and that it was delaying filing its latest 10-K.

In court documents, the company said it was lining up about $60 million of debtor-in-possession financing. The company also noted that it had a large backlog and that demand for its services was increasing.

Global Geophysical's common stock will be delisted from the New York Stock Exchange on Thursday. It will begin trading on the Pink Sheets under the ticker symbol "GEGPQ."

Digital Realty to list

Digital Realty Trust Inc.'s $300 million issue of 7.375% series H cumulative redeemable preferreds will be admitted to the NYSE on Thursday.

The deal came March 19. The ticker symbol will be "DLRPH."

A market source said the shares closed down 2 cents at $24.82.

Digital Realty is a San Francisco-based real estate investment trust.

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