Midday Commentary: Citigroup, Prudential add new issues to Tuesday's preferred stock calendar

By Stephanie N. Rotondo

Phoenix, March 19 - Two new preferred issues came to market on Tuesday, one from Citigroup Inc. and one from Prudential Financial Inc.

Citigroup said it was selling at least $250 million of series C noncumulative perpetual preferreds, talked at 5.875% to 6%.

"I imagine they'll push it to the 5.875% level," a trader said.

The trader saw the issue trading at $24.85 bid, $24.90 offered in the midday gray market.

The offering comes just days after the New York-based financial institution announced a $3.3 billion redemption of trust preferreds.

Prudential meantime said it was offering fixed-to-floating rate junior subordinated notes due 2044. The sale was announced less than two weeks after the company priced a $650 million offering of 5.7% $25-par junior subordinated notes due 2053.

Proceeds of both offerings will be combined to redeem all $920 million of 9% junior subordinated notes due 2068.

A trader said he had not seen the new issue trading, opining that it will be a $1,000-par issue.

The issue is not going to list on any exchange.

However, the 5.7% notes were seen at $24.85 at midday. The trader said the issue got a new trading symbol - "PRH" - and said he expected the securities to list on the New York Stock Exchange either Wednesday or Thursday.

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