Citi preferreds end mostly stronger on dividend declaration; new issues close week mixed

By Stephanie N. Rotondo

Portland, Ore., May 13 - Citigroup Inc.'s preferreds closed Friday's session mostly higher after the company officially declared its first common-stock dividend in more than two years.

Citi's 8.5% series J preferreds were one of the most actively traded securities of the day, according to a preferred market source. The shares gained 6 cents to close at $26.48.

Another source saw the 8.5% series M preferreds and the 6.1% series R preferreds gaining the most. Both issues earned 11 cents to close at $26.54 and $23.81, respectively.

On Friday, Citigroup said it would pay a penny-per-share dividend on its common stock on June 17. The dividend reinstatement comes after the company completed a 1-for-10 reverse stock split.

Among recent new issues, United States Cellular Corp.'s new $25-par notes gave up some previous gains as the bid side fell to just below par. The issue had previously been one of the volume leaders in the preferred market and had been steadily climbing upward.

On the other hand, Hersha Hospitality Trust's recent new issue finally broke par in Friday trading. Traders had told Prospect News that the deal was on the quiet side and not really generating much interest.

The new 5.75% series 2011A senior notes issued by Gulf Power Co., a Southern Company, on Thursday traded up to $24.95 bid, $24.97 offered on Friday from $24.85 bid, $24.90 offered.

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