Colony Capital comes in; Alabama Power redemption expected; GE Capital mixed on sale news

By Stephanie N. Rotondo

Phoenix, April 10 – The preferred stock market ended the week slightly higher, though a trader said Friday’s session was “pretty quiet.”

The Wells Fargo Hybrid and Preferred Securities index was up 5 basis points at the bell.

Among new issues, Colony Capital Inc.’s new $250 million issue of 7.125% series C cumulative redeemable preferreds – a deal priced late Wednesday and freed on Thursday – were slightly off in early trading, as a trader pegged the preferreds at par bid, $25.07 offered.

The paper went out Thursday at $25.05 bid, $25.08 offered.

Meanwhile, a trader said that Alabama Power Co. should soon be announcing its redemption of three series of preferreds. On Thursday, the company raised $425 million via a sale of two series of straight bonds, the proceeds of which will be going toward funding the redemption.

The company’s 5.3% class A cumulative preferreds (NYSE: ALPPP) closed up 3 cents at $25.33 on Friday.

General Electric Capital Corp. was in the news early in the day, as parent company General Electric Co. said it was selling the banking side of its business. The effort began with the proposed sale of GE Capital real estate assets for $26.5 billion.

On the news, GE Capital various issues of $25-par notes were mixed in trading.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.