Preferred stocks firm to end week; KKR deal frees to trade; BB&T lists; recent deals busy

By Stephanie N. Rotondo

Seattle, March 11 – The preferred stock market had a strong tone in Friday trading, following the broader markets higher.

The Wells Fargo Hybrid and Preferred Securities index ended 35 basis points higher.

As for the broader market, its gains were attributed to rising oil prices, as well as continued reaction to the European Central Bank’s stimulus program, which was announced Thursday.

For its part, domestic crude oil rose 1.72% to $38.49 a barrel. On Friday, the International Energy Agency opined that oil prices had found a bottom and Baker Hughes reported another drop in active U.S. drill rigs.

That count came in at its lowest level in 75 years.

The primary pipeline quieted down for the session, following two weeks of steady flows. A market source said KKR & Co. LP’s $300 million of 6.75% series A noncumulative perpetual preferred units – a deal priced Thursday – freed during the trading day, quoting the issue at $24.70 bid, $24.80 offered.

Earlier in the day, a trader pegged the new issue at $24.75 bid, $24.80 offered.

Meanwhile, BB&T Corp.’s $425 million of 5.625% series H noncumulative perpetual preferreds began trading on the New York Stock Exchange on Friday.

The ticker symbol is “BBTPH.” The deal priced March 2.

The preferreds settled at $24.89, which was up a penny day over day.

Other recently priced – and recently listed – deals remained actively traded.

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