Southern California Edison trust preference shares free up; recent deals performing well

By Stephanie N. Rotondo

Phoenix, Feb. 28 - Preferred stocks were again firm on Friday, mimicking the rise of the straight equity markets.

The Wells Fargo Hybrid and Preferred Securities index was up 11 basis points as of midday. The index finished up 14 bps.

Recently priced deals, such as Southern California Edison Co.'s $275 million of 5.75% fixed-to-floating rate cumulative trust preference securities, were "doing really well," a trader said.

That issue, which came Thursday and had already freed to trade in early Friday business, was pegged at $25.35 bid, $25.40 offered.

However, a market source saw the shares ending the day a little lower from those highs at $25.28.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.

The Allstate Corp.'s $650 million of 6.625% series E fixed-rate noncumulative perpetual preferred stock were meantime at $24.82 bid, $24.85 offered, while Kemper Corp.'s $150 million of 7.375% $25-par subordinated debentures due 2054 were at $25.50 bid, $25.75 offered.

A source said Allstate ended at $24.80.

Allstate came Monday. Kemper priced Feb. 20.

And, State Street Corp.'s $750 million of 5.9% series D fixed-to-floating rate noncumulative preferreds - a deal that came Tuesday - were seen at $25.50.

Given how well the primary has performed over the last week, a trader opined that it could be a good omen for the space going forward.

"I bet we'll see a very busy new issue market in March," he said.

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