New deal pipeline stalls; Entergy New Orleans notes free, trade above par; secondary firms

By Stephanie N. Rotondo

Seattle, March 16 – The preferred stock primary market took a breather midweek, with no new deals announced.

One trader said he had heard there could be a deal coming Wednesday but had not seen anything as of mid-morning.

“They will probably give it a couple of days for people to absorb [the recent supply],” he said.

Newly priced deals continued to generate a fair bit of investor interest.

From Tuesday’s dealings, Entergy New Orleans Inc.’s $110 million of 5.5% $25-par first mortgage bonds due 2066 freed up early in the day.

At the close, a market source saw the issue popping 23 cents to $25.92.

Earlier in the day, a trader said the notes “jumped quite a bit,” trading as high as $25.35.

Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferreds were meantime pegged at $24.90 bid, $24.97 offered at mid-morning and seen closing just north of that at $24.98.

The preferreds dominated overall trading for the day, with about 2.2 million shares exchanged.

That issue came Monday and freed to trade late Tuesday morning.

From last week’s business, KKR & Co. LP’s $300 million of 6.75% series A noncumulative perpetual preferred units were seen in a $24.95 to par range.

The units priced Thursday.

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