Morning Commentary: U.S. Cellular to price $25-par notes; State Street’s recent deal lists on NYSE

By Stephanie N. Rotondo

Phoenix, Dec. 1 – Preferred stocks were mildly volatile in early trading as the last month of the year kicked off.

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis point at mid-morning. It had been unchanged to lower but managed to claw its way back up.

In primary activity, United States Cellular Corp. announced an offering of at least $200 million $25-par senior unsecured notes due 2063.

Price talk is 7.25% to 7.375%, according to a market source.

The source pegged the issue at less 40 bid in the early gray market.

The Chicago-based wireless telecommunications company will use the proceeds for general corporate purposes.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC are running the books.

Meanwhile, State Street Corp.’s $750 million of 6% series E noncumulative preferreds – a deal priced Nov. 18 – listed on the New York Stock Exchange on Monday.

The ticker symbol is “STTPE.”

Paper was trading at $25.01 at mid-morning, up from a par open but down from the high of $25.05.

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