Midday Commentary: Preferred market softens but no 'heavy selling'; new First Horizon paper dips

By Stephanie N. Rotondo

Phoenix, Jan. 25 - Preferred stocks were "hanging in there" in Friday trading, according to a trader.

"We've sold off a little bit because we had such a good run," he said. He noted that while preferreds were down a touch, there was "no heavy selling."

First Horizon National Corp.'s new $100 million of 6.2% series A noncumulative perpetual preferreds were seen at $24.55 at midday.

The deal priced Thursday.

In other recent issues, General Electric Capital Corp.'s $550 million of 4.875% senior notes due 2053 were at $25.05, while Southern California Edison Co.'s SCE Trust II-inked 5.1% trust preference shares were coming in at $24.65 bid, $24.75 offered.

A trader said that NuStar Logistics LP's recently priced $350 million of 7.625% fixed-to-floating rate subordinated notes due 2043 are expected to list "anytime" under the symbol "NSS."

NuStar brought the deal Jan. 14. Earlier in the week, the company said that its greenshoe had been exercised in full, bringing total issuance up to $402.5 million.

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