Sotherly offers $25-pars, while E*Trade plans $1,000-par sale; Entergy Louisiana below par

By Stephanie N. Rotondo

Seattle, Aug. 15 – The preferred stock market’s new issue calendar was once again starting off the week by building up.

Sotherly Hotels Inc. announced an offering of series B cumulative redeemable preferreds, the proceeds of which will be used to redeem some or all of the company’s 8% $25-par senior unsecured notes due 2019.

That issue becomes callable on or after Sept. 30.

The notes (Nasdaq: SOHOL) were trading down 32 cents, or 1.24%, to $25.43.

As for the new issue, a market source did not believe it had priced, adding that it was “bid without an offer” at $24.75.

Sandler O’Neill + Partners LP and Janney Montgomery Scott LLC are running the books.

In the $1,000-par space, E*Trade Financial Corp. said it planned to price up to $400 million of series A fixed-to-floating rate noncumulative preferred stock via Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

Proceeds from that sale will be used to complete the purchase of Aperture New Holdings Inc., the parent company of OptionsHouse.

At the close, a source said he believed the deal was “in the roadshow phase.” As such, it too had not priced on Monday.

As for recently priced issues, Entergy Louisiana LLC’s $270 million of 4.875% $25-par collateral trust mortgage bonds due 2066 – from Wednesday’s business – were seen offered at $24.85.

The paper freed to trade early Friday.

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