Preferred Stock Midday Commentary: Qwest selling $25-par notes; NextEra climbing to par

By Stephanie N. Rotondo

Phoenix, June 14 - The preferred stock market was being dominated by new issues, a trader reported at midday Thursday.

Qwest Corp. announced an offering of $25-par senior notes. Price talk was around 7%, the trader said.

"It seems to be really tight. I don't think they are going to grow it much," he said.

The deal was "doing pretty well," quoted in a high-$24.80s to low-$24.90s context.

Proceeds will be used with available cash and additional borrowings from parent company CenturyLink Inc. to redeem $484 million of 7.5% notes due 2051.

That issue (NYSE: CTW) was down 59 cents, or 2.23%, in midday trading at $25.91.

Meanwhile, NextEra Energy Capital Holdings Inc.'s new 5.625% $25-par series H junior subordinated debentures due June 15, 2072 were inching closer to par, according to a trader.

He saw paper in the mid-$24.90s.

The $325 million offering priced Tuesday and freed to trade on Wednesday.

Also, as expected, American Financial Group Inc.'s $200 million offering of 6.375% $25-par senior notes due June 12, 2042 officially listed on the New York Stock Exchange.

The ticker symbol is "AFW." The notes were trading at par.

American Financial priced the deal June 7.

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