KeyCorp’s new issue frees to trade, moves above par; DTE listing expected; Vanguard mixed

By Stephanie N. Rotondo

Seattle, Dec. 6 – The preferred stock market was inching higher on Tuesday after starting the week with a slightly softer tone.

The Wells Fargo Hybrid and Preferred Securities index finished up 12 basis points, though it was up 18 bps at mid-morning.

A trader said KeyCorp’s $500 million of 6.125% series E fixed-to-floating rate noncumulative preferreds – a deal priced Monday – freed to trade in early dealings, shooting above par to a $25.05 to $25.10 context.

That compared to $24.93 at Monday’s close.

At the bell, a market source said the paper closed at $25.16, though he deemed the volume weighted average price of $25.065 more accurate.

The source added that there was “sizable volume” in the issue, with about 2.4 million shares trading.

Meanwhile, DTE Energy Co.’s $280 million of 6% $25-par 2016 series F junior subordinated debentures due 2076 were seen at $24.30 bid, $24.50 offered at mid-morning and at $24.70 at the close.

A trader said that deal – which came Nov. 28 – would be admitted to the New York Stock Exchange “probably tomorrow.”

The symbol is expected to be “DTY.”

Among more established issues, Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) were retreating as crude oil prices waned.

The units were off 8 cents, or 2%, at $3.92.

The 7.75% series C cumulative redeemable preferred units (Nasdaq: VNRCP) meantime added 2 cents to $4.00.

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