Morning Commentary: Sotherly, E*Trade add deals to pipeline; Entergy Louisiana trading below par

By Stephanie N. Rotondo

Seattle, Aug. 15 – The preferred stock market’s new issue calendar was once again starting off the week by building up.

Sotherly Hotels Inc. announced an offering of series B cumulative redeemable preferreds, the proceeds of which will be used to redeem some or all of the company’s 8% $25-par senior unsecured notes due 2019.

That issue becomes callable on or after Sept. 30.

The notes (Nasdaq: SOHOL) were trading off 27 cents, or 1.06%, to $25.48 in early trading.

Sandler O’Neill + Partners LP and Janney Montgomery Scott LLC are running the books.

In the $1,000-par space, E*Trade Financial Corp. said it planned to price up to $400 million of series A fixed-to-floating rate noncumulative preferred stock via Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

Proceeds from that sale will be used to complete the purchase of Aperture New Holdings Inc., the parent company of OptionsHouse.

A trader said there were few details available on either deal as of mid-morning.

As for recently priced issues, Entergy Louisiana LLC’s $270 million of 4.875% $25-par collateral trust mortgage bonds due 2066 – from Wednesday’s business – were seen offered at $24.85.

The paper freed to trade early Friday.

Qwest Corp.’s $850 million of 6.5% $25-par senior notes due 2056 – an issue priced Thursday – were meantime pegged at par bid, $25.05 offered.

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