No new issuance as week comes to close; Entertainment Properties frees; BofA falls, rebounds

By Stephanie N. Rotondo

Phoenix, Oct. 5 - After a busy week of new issuance, no new preferred deals had been announced as of midday on Friday.

Still, it was a "strong day," a market source said, driven largely by new economic data, including a report that indicated unemployment had fallen to below 8% in September.

In recently priced deals, Entertainment Properties Trust Inc.'s new $125 million of 6.625% series F cumulative redeemable perpetual preferred stock, which priced after the bell on Thursday, freed from the syndicate on Friday.

After announcing a $5.13 billion redemption of trust preferreds, some of Bank of America Corp.'s issues were "trading off," according to a trader.

"People are selling them off to raise money," he said.

By the end of the day, however, the called issues were closing mostly higher.

Entertainment Properties frees

Entertainment Properties' new 6.625% series F preferreds freed to trade Friday after pricing late Thursday.

A trader saw the issue trading at $24.70, the same level it had been at Thursday prior to pricing.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint bookrunning managers. The joint lead managers are Barclays and KeyBanc Capital Markets Inc.

The Kansas City, Mo.-based real estate investment trust will use proceeds to redeem its 7.375% series D cumulative redeemable preferreds for a total redemption price of $115.8 million. Remaining funds will be used for general corporate purposes, including the acquisition, development or financing of properties.

The series D preferreds (NYSE: EPRPD) were unchanged Friday at $25.07.

GE Capital performs well

General Electric Capital Corp.'s $825 million offering of 4.875% $25-par senior notes due 2052 - a deal that came Tuesday - traded as high as $25.05 in early trading Friday. A trader said the market was $24.90 bid, par offered at midday.

"They've moved up nicely," he said.

Bank of America rallies

Bank of America preferreds slipped but came back to end firm following news out Thursday regarding a $5.13 billion redemption of trust preferreds.

The 7% capital securities (NYSE: BACPW) were the only ones to finish the day softer, dipping 2 cents to $25.23.

The 5.875% capital securities (NYSE: BACPU) popped up 30 cents to $25.36, and the 6% capital securities (NYSE: BACPY) gained 32 cents, ending at $25.36.

The redemption of the Bank of America securities is meantime being touted as a positive for the bank. The company said it expects to post a $100 million pre-tax charge in the fourth quarter due to the call but that interest expense cost savings would be $50 million for the remainder of 2012 and about $300 million in 2013.

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