Midday Commentary: Southern California Edison to issue trust preference shares; GE frees up

By Stephanie N. Rotondo

Phoenix, Jan. 23 - A preferred stock trader said on Wednesday that "we keep hearing there's going to be a strong new issue market."

The new issues continued to churn out at midweek, as Southern California Edison Co. announced an offering of trust preference shares linked to SCE Trust II.

Price talk is 5.125% to 5.25%, a trader said, seeing the proposed issue trading at $24.85 in the gray market as of midday. However, he noted that the deal had "come in a little bit, so I'd guess they are going to revise talk on that.

"But I think it's doing pretty well," he added.

Meanwhile, General Electric Capital Corp.'s newly priced $550 million of 4.875% $25-par senior notes due 2053 freed to trade after coming on Tuesday.

A trader quoted the issue at $24.75 bid, $24.80 offered.

As was expected, Federal Agricultural Mortgage Corp.'s $60 million of 5.875% series C perpetual preferreds - a deal that priced Jan. 14 - listed on the New York Stock Exchange under the ticker symbol "AGMPA."

"It finally listed, but I don't think anybody saw it," a trader commented, seeing a $25.16 bid, $25.30 offered market for the paper.

The issue was trading at $25.16 at midafternoon, versus opening levels of $25.50.

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