Goldman, Morgan Stanley deals list on NYSE; Safe Bulkers, American Homes free to trade

By Stephanie N. Rotondo

Phoenix, May 1 - Preferred stocks were slightly soft as the new month began but shook off the early doldrums to end in positive territory.

The Wells Fargo Hybrid and Preferred Securities index was off 2 basis points as of mid-morning, but ended up 19 bps.

"We had a lot of listings," a trader said, as the Goldman Sachs Group Inc.'s $700 million of 6.375% series K fixed-to-floating rate noncumulative perpetual preferreds hit the New York Stock Exchange. Morgan Stanley's $500 million of 6.625% series G noncumulative perpetual preferred stock also listed, he said.

Goldman came April 21, and Morgan Stanley priced the next day. The ticker symbols are "GSPK" and "MSPG," respectively.

The Goldman preferreds were trading at $25.44 versus an opening level of $25.39 just before noon ET. Morgan Stanley was at $24.99, which compared to an opening level of $25.05.

Goldman closed at $25.47 on trades of more than 834,000 shares. Morgan Stanley was meantime quite active, with about 1.22 million shares being exchanged.

The Morgan Stanley preferreds ended at $25.05.

Meanwhile, Safe Bulkers Inc.'s $50 million of 8% series C cumulative redeemable perpetual preferred stock - a deal that came Wednesday - freed to trade early in the session, according to a trader.

He saw the issue at $24.95 bid.

The trader noted that the company's 8% series B cumulative redeemable preferreds (NYSE: SFPB) were "trading at a good premium." And while the coupon was the same, the Bs have a feature that the new issue does not: a dividend step-up if the company fails to redeem the issue by 2018.

"So that should be trading on a yield-to-call basis because it will be taken out, certainly by 2018," he said.

Early in the session, the issue was trading off 11 cents to $26.04. But like the general preferred market, it rebounded by the end of business, closing up a penny at $26.16.

After the close, a market source pegged the new deal at $24.05 bid, $24.10 offered.

American Homes 4 Rent's $185 million of 5.5% series C participating preferred shares also freed up on Thursday.

A trader quoted that issue at $24.40 bid, $24.45 offered around mid-morning. Post-close, a source saw the preferreds ending at $24.52.

The deal priced late Tuesday.

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