Midday Commentary: Morgan Stanley, Miller Energy on tap; Allstate frees up; CHS revving up

By Stephanie N. Rotondo

Phoenix, Sept. 24 - The preferred stock market was firming back up on Tuesday as the Wells Fargo Hybrid and Preferred Securities index moved up by 12 basis points by midday.

The primary continued to pick up as well. Morgan Stanley & Co. Inc. announced plans to sell at least $250 million of series E fixed-to-floating rate noncumulative perpetual preferreds.

Initial price talk is around 7.375%, but a trader said he was hearing that could be lowered.

He saw a less 5-cent trade in the gray market around midday.

Miller Energy Resources Inc. also said it was bringing a deal, an offering of 10.5% series D fixed-to-floating rate cumulative redeemable perpetual preferred stock. However, a trader said he hadn't seen any markets for that issue.

"It's going to be like a best-efforts deal," he said.

From Monday business, the Allstate Corp.'s newly priced $350 million issue of 6.75% series C fixed-rate noncumulative perpetual preferreds had freed up by midday, according to a trader.

He pegged that paper at $24.78 bid, $24.80 offered.

Among recent deals, CHS Inc.'s $250 million issue of series 1 class B cumulative redeemable preferreds - a deal that came Thursday and freed to trade on Friday - was seen bid at $26.00.

"Once that freed, it really moved up pretty quick," a trader said.

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