Black & Decker lists on NYSE; CommonWealth to redeem preferreds; MPG Office active, higher

By Stephanie N. Rotondo

Phoenix, July 26 - Preferred stocks were ticking up Thursday, though there were "no real big movers," a trader said.

In recent new deals, Stanley Black & Decker Inc.'s $750 million of 5.75% $25-par junior subordinated notes due 2052 officially listed on the New York Stock Exchange Thursday, as was expected.

Meanwhile, Newton, Mass.-based CommonWealth REIT said late Wednesday that it will redeem its 7.125% series C cumulative redeemable preferreds on Aug. 24 at par plus accrued dividends.

A trader noted that the issue goes ex-dividend on Monday.

Los Angeles-based real estate investment trust MPG Office Trust Inc. announced another redemption during the session. The company said it had redeemed nearly 4 million operating partnership units held by Robert F. Maguire III and related entities. The news resulted in massive trading for the company's 7.625% series A cumulative redeemable preferred shares.

Elsewhere in the secondary, Zions Bancorporation's 9.5% series C noncumulative perpetual preferreds were trading actively, though "ironically" lower, a market source said.

Black & Decker lists

Black & Decker's new 5.75% $25-par junior subordinated notes due 2052 officially listed on the NYSE Thursday.

The ticker symbol is "SWJ." The deal priced July 18.

The notes were trading at $25.65 at midday, down from opening levels of $25.72.

The issue closed the day at $25.68, which was called flat by a market source.

CommonWealth announces call

CommonWealth REIT said late Wednesday that it will redeem all of its 7.125% series C cumulative redeemable preferreds using proceeds from its recent new issue.

The series C preferreds (NYSE: CWHPC) traded down 3 cents to $25.44.

The recent issue - $175 million of 5.75% $25-par senior notes due Aug. 1, 2042, which priced July 20 - was seen at $24.65.

MPG unusually active

MPG Office Trust said Thursday that it had redeemed nearly 4 million operating partnership units held by Maguire and related entities. The company issued an equal number of shares of common stock in exchange for the units. At Maguire's request, the common stock was issued to a party not related to Maguire.

On that news, the company's 7.625% series A cumulative redeemable preferreds (NYSE: MPGPA) were trading actively and higher, rising $2.76, or 16.06%, to $19.95.

A market source noted that typically, only 4,000 to 5,000 preferreds trade on an average day. On Thursday, nearly 645,000 preferreds changed hands.

Because of the redemption, all tax protection in favor of Maguire and related entities, as well as all remaining limited partners, will now expire on June 27, 2013.

Tax protections on certain buildings will also expire.

Vornado Realty Trust said it called $255 million of securities, including $180 million of 7% series D-10 and 6.75% series D-14 cumulative redeemable preferred units and $75 million of 7% series E cumulative redeemable preferreds.

The redemption will occur Aug. 16 and will result in a $3.1 million decrease in annual dividend costs as well as a $12 million gain in the third quarter. Proceeds from the company's recent sale of $300 million of 5.7% series K cumulative redeemable preferred shares will fund the redemption.

The 7% series Es (NYSE: VNOPE) traded up 8 cents to $25.35. The Ks (NYSE: VNOPK) were flat at $24.75.

Zions declines despite report

A market source said Zions Bancorporation's 9.5% series C noncumulative perpetual preferreds (NYSE: ZBPC) were "ironically" lower despite a positive research report that had come out.

The source said the report indicated that there was a "high probability of [the issue] being called" in September 2013.

On top of that, the issue has an "attractive yield to call," he said.

The preferreds closed down 12 cents at $26.33.

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