Midday Commentary: Retail Properties eyes preferred sale talked at 7%; Seaspan issue frees

By Stephanie N. Rotondo

Phoenix, Dec. 11 - Though the primary preferred market is expected to be in slowdown mode as the end of the year approaches, one new deal was announced on Tuesday.

Retail Properties of America Inc. said it intended to sell series A cumulative redeemable perpetual preferred stock. Price talk is around 7%, according to a trader.

"It looks fine," the trader said of the proposed deal, noting that it was "an unrated [real estate investment trust]" with a "decent coupon."

He saw the issue trading at $24.75 in the gray market as of midday.

Meanwhile, Seaspan Corp.'s $67.5 million of 7.95% series D cumulative redeemable perpetual preferreds - a deal that came Thursday - freed to trade early Tuesday. The issue moved up after freeing to $24.80, a trader reported.

However, Entergy Arkansas Inc.'s new $200 million of 4.9% first mortgage bonds due 2052 -a deal that also priced Thursday - "backed off a little," the trader said, placing the $25-par bonds at $25.20.

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