Gabelli Utility prices new issue; DTE Energy notes trade up; Hersha Hospitality frees up

By Stephanie N. Rotondo

Seattle, May 25 – The preferred stock market had a modestly firm tone to it on Wednesday.

“Everything is green,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index ticked up 5 basis points.

A new deal was announced around midday. Prior to that, a trader said he had not heard of any issues coming.

“I have heard nothing for today yet,” the trader said. “I think if we do see any deals, it’s going to be in drips and drabs, like these little [real estate investment trusts] and the odd-ball insurance company.”

But Gabelli Utility Trust did sneak in a deal, a $50 million issue of 5.375% series C cumulative preferreds.

Price talk was around 5.5%.

Morgan Stanley & Co. LLC ran the books.

Upon pricing, a trader quoted the issue at $24.85 bid, $24.95 offered.

As for deals from earlier in the week, DTE Energy Co.’s $300 million offering of 5.375% $25-par 2016 series B junior subordinated debentures due June 1, 2076 were pegged in a $24.90 to par context.

After the close, a source said the notes were up 4 cents at $24.94.

From Tuesday’s business, Hersha Hospitality Trust’s $175 million of 6.5% series D cumulative redeemable preferreds were seen wide at $24.75 bid, $24.90 offered.

One source said the paper finished the session “pretty much flat” at $24.74.

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