Midday Commentary: Preferreds continue to weaken; Gulf Power, Vanguard planning new issues

By Stephanie N. Rotondo

Phoenix, June 12 - The midweek trading session saw more selling in the preferred stock market, a trader reported Wednesday.

"Everything is getting slammed right now," he said. "It's a bloodbath."

Two new deals hit the tape despite the heavy marketplace.

"I think it's silly to bring new issues in this market, with everything getting whacked," a trader said.

Gulf Power Co. announced an offering of $100-par series 2013A preference shares. Price talk is around 5.625%, and pricing is expected late in the day.

Vanguard Natural Resources LLC meantime said it was offering series A cumulative redeemable perpetual preferred units.

Price talk is around 7.875%, a trader said.

The trader remarked that he was seeing few markets for the deals - not a surprise given the day's sell-off.

He pegged the Vanguard units at $24.65 offered.

Among recently priced deals, Allstate Corp.'s $250 million of 5.625% series A fixed-rate noncumulative preferreds were seen at $24.70 bid.

The issue - which priced a week ago - was trading around par on Monday.

In the secondary, financials remained in focus and most issues were under pressure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.