Midday Commentary: Boston Properties kicks off week's new issue calendar; Wells Fargo frees up

By Stephanie N. Rotondo

Phoenix, March 18 - The preferred stock arena saw yet another new issue hitting the market as the week began.

Boston Properties Inc. announced an offering of series B cumulative redeemable preferreds on Monday. At least $150 million shares were expected to be sold at price talk of 5.25% to 5.375%.

A trader quoted the issue in a $24.70 to $24.90 context.

Meanwhile, Wells Fargo & Co.'s new $575 million of 5.25% series P class A noncumulative perpetual preferreds - a deal that priced on Friday - freed to trade at noon ET, a trader said.

He saw the preferreds at $24.80 as of midday.

In the world of U.S. banks, Citigroup Inc. and Bank of America Corp. both recently announced redemptions of trust preferreds and higher coupon securities. According to one market analysis, the total amount being called - $5.5 billion of securities from BofA and $3 billion from Citi - is equal to over 12% of total U.S. bank preferred issuance. As such, "we'll probably have quite a few deals coming, bank-wise," a trader said.

Away from banks, PPL Capital Funding Inc.'s $400 million of 5.9% $25-par 2013 series B junior subordinated notes due 2073 listed on the New York Stock Exchange on Monday.

The deal priced March 12. The ticker symbol is PPX.

The notes were trading at par as of midday.

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