Market gives back some of previous day's gains; CHS deal a no-show; Zions notes list

By Stephanie N. Rotondo

Phoenix, Sept. 19 - Preferred stocks were trading off a touch early Thursday after popping on Wednesday after the Federal Reserve put its plan to taper a stimulus program on hold.

The Wells Fargo Hybrid and Preferred Securities index traded off 28 basis points. "[The market] gave up about a quarter of yesterday's gains," one market source said.

Despite the minor dip, the new issue market seemed to be opening back up.

As previously reported, CHS Inc. had said in early September that it was planning an offering of up to $250 million class B reset rate cumulative redeemable preferred stock. On Thursday, a trader said the deal was expected to price during Thursday business.

Price talk is 7.75% to 8%, according to the trader.

The trader saw a gray market quote for paper at $24.60 bid, $24.80 offered at midday. Later in the day, he said the issue was being offered at $24.65.

The source also noted that the company's existing 8% cumulative redeemable preferreds (Nasdaq: CHSCP) were trading at quite a high premium.

"[The preferreds] are starting to get pushed down a little [in the wake of the new deal], but nowhere near where it should be," the trader said.

At midday, the issue was trading off $1.02, or 3.08%, to $32.10. At the close, the shares were down $1.19, or 3.59%, at $31.93.

Though the deal was expected to price after the session ended, a source said he had not seen any details emerge. However, the company did file a registration statement, adding about $37.5 million shares to the previous registration of $250 million shares.

Zions' 6.95% notes list

Zions Bancorporation's $87.89 million of 6.95% fixed-to-floating rate subordinated notes due 2028 listed on the New York Stock Exchange on Thursday.

The ticker symbol is "ZBK." The notes closed the day at $25.10, down from opening levels of $25.20.

The Salt Lake City-based bank sold $75 million of the notes via an online auction on Sept. 12. The company also sold $12.89 million of the securities outside of the auction.

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