Midday Commentary: Summit Hotel prices new deal; Tortoise Energy's new issue holds at par

By Stephanie N. Rotondo

Phoenix, Dec. 4 - New and recent issues continued to be active in the preferred stock market Tuesday as investors remained focused on "fiscal cliff" dealings.

"The president said that the market is poised to take off if they can get a deal done, which I think is true," a trader said. It remained unclear, however, if Congress could come to terms before the end of the year.

Summit Hotel Properties Inc. brought $67.5 million of 7.875% series B cumulative redeemable perpetual preferred stock on Tuesday.

A trader said he saw a $24.93 bid for the paper but added that "I'm not hearing of any trades going on."

Meanwhile, Tortoise Energy Infrastructure Corp.'s $80 million of 4.375% $10-par series B mandatory redeemable preferred stock - a deal that priced Monday - was pegged at par bid, $10.10 offered at midday.

CoreSite Realty Corp. then announced plans for a new issue of series A cumulative redeemable preferred stock, talked at 7.25% to 7.375%.

A trader saw a less 40-cent bid in the gray market at midafternoon.

In new listings, Pitney Bowes Inc.'s $100 million of $25-par senior notes due Nov. 27, 2022 were admitted to the NYSE on Tuesday under the ticker symbol "PBIPA."

The issue priced Nov. 20. The notes were quoted at $24.95 bid, $24.99 offered by a trader at midday.

Telephone & Data Systems Inc.'s $175 million of 5.875% senior notes due Dec. 1, 2061 also listed.

The ticker symbol is "TDA." The notes priced Nov. 26.

Paper was trading at $24.94 as of midafternoon, versus opening levels of $24.95.

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