Preferred market action remains subdued, but prices hold in; Entergy Louisiana's bonds list

By Stephanie N. Rotondo

Phoenix, July 6 - Preferred stocks "have moved up slightly" despite a weakening straight equity market, a trader said Friday.

"I thought we'd see a little sell-off with the market down again," he said. "But everything is holding in there."

"Obviously, it was very light volume," another market source said. "It was kind of mixed, though it was up earlier."

The source noted that the preferred market began the day trading down a touch, only to end up modestly.

With many players away from their desks, activity remained muted.

"It might pick up next week when people get back from vacation," a trader said.

Entergy $25-par bonds list

Entergy Louisiana LLC's recent $200 million offering of 5.25% $25-par first mortgage bonds due July 1, 2052 officially listed on the New York Stock Exchange Friday under the ticker symbol "ELJ."

"It seems to be doing well," a trader said.

The company priced the bonds at par on June 26. Proceeds from the offering will be used for general corporate purposes.

The preferreds ended the day at $25.39, down from midday levels of $25.40 but up from opening trades of $25.35.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunning managers. J.P. Morgan Securities LLC and Raymond James & Associates Inc. were the co-managers.

Entergy Louisiana is the Baton Rouge, La.-based energy-providing subsidiary of Entergy Corp.

Market ends mixed

Among other preferreds, U.S. Bancorp's 6% fixed-to-floating-rate series G noncumulative perpetual preferreds (NYSE: USBPN) traded up 3 cents to $27.41.

CapLease Inc.'s 8.125% series A cumulative redeemable preferreds (NYSE: LSEPA) were also higher, gaining a penny to end at par.

On the downside, Barclays plc's 7.1% series 3 noncumulative callable dollar preference shares (NYSE: BCSPA) dropped 8 cents to $24.72, while Ally Financial Inc.'s 8.125% fixed-to-floating-rate series 2 trust preferreds (NYSE: ALLYPA) lost 4 cents, ending at $24.12.

Royal Bank of Scotland Group plc's 6.6% series S noncumulative dollar preference shares (NYSE: RBSPS) declined 2 cents to $17.97.

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