Morning Commentary: New issue calendar fills up as Capital One, Scorpio Tankers add new deals

By Stephanie N. Rotondo

Phoenix, Oct. 28 – The primary preferred stock market was showing signs of life on Tuesday.

Capital One Financial Corp. launched an offering of $250 million series D fixed-rate noncumulative perpetual preferred stock, with price talk in the 6.875% area.

A trader saw a gray market quote of $24.85 bid, $24.90 offered in early trading.

“I imagine we’ll see a price revision, so those may come in a little,” he said.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal.

Meanwhile, Scorpio Tankers Inc. is planning an offering of $25 million $25-par senior unsecured notes due 2017.

Price talk is around 7.5%.

Stifel, Nicolaus & Co. Inc., Jefferies Inc., Credit Suisse Securities (USA) LLC and Janney Montgomery Scott LLC are running the books.

Pricing is expected Wednesday.

A trader said there was “no selling group” and added that he had not seen any gray markets for the paper.

Looking ahead, the calendar is filling up.

Del Monte Pacific Ltd. is said to be planning a $360 million sale of $10.00 preferreds, the proceeds of which will be used for debt refinancing.

Price talk on that deal –slated for early December – is 5.25% to 7%.

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