Preferreds start week in the red; recent deals trade down; Southern California Edison trades up

By Abigail W. Adams

Portland, Me., Jan. 29 – Preferreds began the week as they ended the last one – in the red with both the Wells Fargo Hybrid & Preferred Securities Financial Index and the U.S. iShares Preferred Stock ETF down.

The Wells Fargo Hybrid & Preferred Securities Financial Index was down 66 basis points at market close Monday, after closing last Friday down by 32 basis points.

The U.S. iShares Preferred Stock ETF was down 0.84% on Monday.

Last week’s deals moved in synch with the broader markets.

Costamare, Inc.’s recently priced 8.875% series E cumulative redeemable preferreds and Spark Energy, Inc.’s 8.75% series A fixed-to-floating rate cumulative redeemable preferreds also both ended the day on a down note.

Costamare’s new preferreds deal and Spark Energy’s add-on were the only deals to price last week. The primary market remained quiet on Monday with no new deals announced.

While the overall market was down, Southern California Edison Co.’s trust preferreds made gains during Monday’s session.

Last week’s deals

Costamare’s recently priced 8.875% series E cumulative redeemable preferreds were down on their second full trading day.

The $25-par preferreds slipped 3 cents, or 0.12%, to $24.87 early in Monday’s session. The preferreds traded in a range of $24.83 to $24.95 before closing Monday at $24.86, a decrease of 4 cents, or 0.16%.

Costamare priced $115 million, or 4.6 million shares, of the 8.875% series E preferreds on Jan. 25.

Spark Energy’s 8.75% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were down 12 cents, or 0.49%, to $24.48 early in Monday’s session. The preferreds rebounded in high volume trading Monday, while still ending the day in the red.

The preferreds closed Monday at $24.59, a decrease of 1 cent, or 0.04%.

Spark Energy priced a 2 million share add-on to its $25-par 8.75% series A preferreds on Jan. 23.

SCE up

Southern California Edison’s Trust III 5.75% series H fixed-to-floating rate trust preferred stock was up 23 cents, or 0.91%, to $24.83 at market close on Monday.

The company’s Trust IV 5.375% series J preferred stock was up 35 cents, or 1.43%, to $24.83.

The company’s Trust V 4.45% series K fixed-to-floating rate preferred trust stock was up 19 cents, or 0.76%, to $25.24. The company’s Trust VI 5% series L cumulative redeemable preferred stock was up 16 cents, or 0.71%, to $22.81.

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