Midday Commentary: Summit Hotel, Medley Capital to price deals; PPL Capital notes free to trade

By Stephanie N. Rotondo

Phoenix, March 13 - A preferred stock trader said the market was "strangely quiet" on Wednesday, despite two more new issues hitting the tape.

Summit Hotel Properties Inc. announced an offering of at least $60 million of series C cumulative redeemable preferreds, which were talked around 7.25%. Medley Capital Corp. meantime said it would sell at least $40 million of $25-par senior notes due 2023.

Price talk on that issue was around 6.375%.

"I don't see them doing much," a trader remarked, pointing to their small size.

PPL Capital Funding Inc.'s new $400 million issue of 5.9% $25-par 2013 series B junior subordinated notes due April 30, 2073 - a deal that priced Tuesday - had freed early in the day's session, according to a trader.

He quoted the issue at $25.05 bid, $25.10 offered.

Meanwhile, Astoria Financial Corp.'s $135 million of 6.5% series C noncumulative perpetual preferreds - another deal from Tuesday - was pegged at $24.75 bid, $24.85 offered.

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