Midday Commentary: Miller Energy planning third add-on; Arbor Realty, General Finance on tap

By Stephanie N. Rotondo

Phoenix, May 6 - A preferred stock trader said a "bunch of small deals" were entering the market on Monday.

However, because the deals were on the small size, activity in the new issues was lackluster. It didn't help that "the markets are flat," the trader said.

Miller Energy Resources Inc. said it was planning a third follow-on offering to its 10.75% series C cumulative redeemable preferreds (NYSE: MILLPC). The company originally sold $17.13 million of the preferreds in September 2012 and followed that up with an offering of $64.13 million in October. In February, the company issued another $15.63 million.

All sales were done on a "best-efforts" basis.

The preferreds were down 7 cents at midday at $22.52.

Meanwhile, Arbor Realty Trust Inc. announced plans to price an issue of series B cumulative redeemable preferred stock.

A trader said price talk was around 7.875%, though he had not seen any markets for the paper as of midday.

The trader said the deal was expected to be about $25 million.

General Finance Corp. is also talking a new issue of $100-par series C cumulative redeemable preferreds. The company said it was selling $30 million of the preferreds, with price guidance between 8.75% and 9.25%.

A trader said he had not heard any details on that deal either.

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