Comcast prices $250 million of $25-par notes due 2061; Kimco Realty's new issue falters

By Stephanie N. Rotondo

Phoenix, Nov. 29 - The primary preferred stock market continued to churn out deals Thursday, as Comcast Corp. announced plans for an offering of senior notes due 2061.

"I was kind of shocked they brought this deal," a trader said, noting that it "seems a little aggressive on the yield."

Price talk was 5% to 5.125% and the size was expected to be about $250 million.

The issue was trading at $24.63 bid, $24.72 offered in the gray market as of midday, the trader said.

At the close, the issue was trading at $24.55 bid, $24.63 offered.

Comcast brought the deal after the market was done for the day. It was the expected $250 million and came at 5%.

Despite his shock, the trader said that companies might be looking at the federal government's plan to continue buying up Treasury bonds as a positive, as it would keep interest rates at lower levels. Additionally, if a "fiscal cliff" deal can be reached, that might encourage issuers to jump into the market.

If a deal can't be reached, however, it could mean a sell-off, he said.

Meanwhile, Kimco Realty Corp.'s $175 million of 5.625% class K cumulative redeemable perpetual preferred stock - a deal that priced Wednesday - was offered at $24.57 at midday.

"Those are a little weak," a trader commented.

By the end of the day, that issue remained weak, closing at $24.43 bid, $24.54 offered.

But Prudential Financial Inc. and Webster Financial Corp.'s recent deals were faring rather well.

Prudential's $500 million of 5.75% $25-par junior subordinated notes due Dec. 15, 2052 - which priced late Tuesday along with Webster's $110 million of 6.4% series E noncumulative perpetual preferreds - was seen at $24.75 bid, $24.85 offered.

Webster's new issue was holding around par.

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