Preferreds begin week with firmer tone; Integrys prices upsized 6% $25-par notes due 2073

By Stephanie N. Rotondo

Phoenix, Aug. 12 - The preferred stock market got the week started off with a new issue from Integrys Energy Group Inc. that was doing rather well, according to a trader.

"There have been some decent trades in it," a trader said of the $25-par fixed-to-floating rate junior subordinated notes due 2073.

He saw a gray market quote of $24.85 bid, $24.90 offered at midday.

The trader said the stated size was $200 million. "I'm not sure how much they want to grow that," he said, seeing price talk around 6%.

The issue ended up coming at 6% and was upsized to $400 million.

Later in the session, a market source saw the issue coming in a bit, quoting it at $24.70 bid, $24.77 offered.

The notes begin to float on Aug. 1, 2023 at Libor plus 322 basis points. The floating rate is reset quarterly.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers.

Given how well the new deal was performing early in the session, and "with the equity tape hanging in there and Treasuries stabilizing," the trader speculated that the new issue market could start to pick back up, especially considering that several deals were said to be shelved as the market sold off for the last few weeks.

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