Citi’s new $1,000-pars trade around par; Global Indemnity frees; Qwest notes weaken

By Stephanie N. Rotondo

Phoenix, Aug. 6 – Preferred stocks were modestly higher in Thursday trading, even as the straight equity market declined.

The stock market’s decline was attributed to weakness in media stocks, as investors worried about consumers moving away from cable TV.

The Wells Fargo Hybrid and Preferred Securities index ended up 4 basis points. One market source noted that the index was up 2 bps to 8 bps all day.

In recent deals, Citigroup Inc.’s $1.25 billion of 5.95% $1,000-par series Q fixed-to-floating rate noncumulative preferreds – a deal that priced Wednesday – was seen holding “right around par,” a trader said.

He quoted the issue at 99.75 bid, par offered.

After the bell, a market source said the issue closed at par, though he said the volume weighted average price was 100.0275.

Among new $25-par issues, Global Indemnity plc’s $100 million of 7.75% subordinated notes due 2045 – another deal from Wednesday – freed to trade early in the afternoon.

The notes were pegged at $24.57 bid, $24.60 offered early in the session but moved up to $24.70 bid, $24.75 offered by the bell, according to a source.

Qwest Corp.’s 7% $25-par notes due 2052 (NYSE: CTU) were weakening in early trades, as the market reacted to parent company CenturyLink Inc.’s earnings announcement.

The notes closed down 3 cents at $26.28.

The earnings came in below Wall Street expectations, and the company also lowered its outlook.

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