Lloyds reports wider net loss, preferreds slip; RBS paper weakens; CBS to call $25-par notes

By Stephanie N. Rotondo

Portland, Ore., Feb. 24 - The preferred stock market ended the week on a marginally higher note, sources reported Friday, and volume was deemed to be light to moderate.

The primary market did not see Triangle Capital Corp.'s planned new issue price during the session. Sources said they had heard little of the $50 million offering of senior notes due March 15, 2019 and speculated it was because it was such a small issue.

In the secondary space, Lloyds Banking Group plc's preferreds were among the day's most actively traded securities as the company reported earnings. Royal Bank of Scotland Group plc, which reported on Thursday, was also busy. Both names were trending downward.

Meanwhile, CBS Corp. priced a new issue of high-yield bonds on Friday, the proceeds of which will be used to redeem the television company's 6.75% $25-par senior notes due 2056. The notes weakened during trading.

Lloyds slips post-earnings

Lloyds Banking Group's preferreds were softening after the U.K. bank reported a wider-than-expected full-year loss.

The 7.75% preferreds (NYSE: LYGPA) fell a nickel to $25.89.

For fiscal 2011, Lloyds reported a net loss of £2.8 billion, versus expectations of £2.41 billion.

Furthermore, an expected tepid recovery in 2012 caused the bank to delay its income-related targets.

"This is going to be a very difficult year," Antonio Horta-Osorio, chief executive officer, said during a conference call held Friday. "We expect the attainment of our income-related targets to be delayed as a result of the weaker economic outlook."

RBS gives back gains

Royal Bank of Scotland was also on the weaker side, just one day after the Edinburgh-based bank reported its 2011 numbers.

The preferreds had gained in the previous session.

On Friday, the 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) fell 6 cents to $18.39, while the 6.08% noncumulative guaranteed trust preferreds (NYSE: RBSPG) dropped 7 cents to $13.10.

In its Thursday earnings release, RBS reported a 2011 net loss of £1.9 billion, due in part to a 54% decline in profit from its investment-banking unit and also to its Greek sovereign debt holdings, which are currently valued at 21% of face value.

CBS calls notes

New York-based mass media company CBS said Friday it will call its 6.75% $25-par senior notes due 2056 with proceeds raised from a new issue.

The notes (NYSE: CPV) dropped 6 cents to $25.39.

The company priced a $700 million issue of 3.375% 10-year senior notes on Friday. The notes were sold at 99.095 to yield 3.483%, or Treasuries plus 150 basis points.

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