Midday Commentary: New issue calendar expected to pick up; Cullen/Frost, PartnerRe doing well

By Stephanie N. Rotondo

Phoenix, Feb. 13 - The primary preferred stock market was faring well on Wednesday, though no new issues were announced.

However, "we're still seeing lots of filings," a trader remarked, "so we could see an active calendar."

Cullen/Frost Bankers Inc.'s new $150 million of 5.375% series A noncumulative perpetual preferreds were quoted at $24.72 bid, $24.76 offered at midday.

"It probably should move up," a trader said. "It's not a bad deal, but it's small."

The deal priced Tuesday.

Meanwhile, PartnerRe Ltd.'s $250 million of 5.875% series F noncumulative redeemable preferreds were continuing to trade around par.

The issue priced Monday and freed up on Tuesday.

In other recent deals, Armour Residential REIT Inc.'s $135 million issue of 7.875% series B cumulative redeemable preferreds - a deal that priced Feb. 8 - listed on the New York Stock Exchange under the ticker symbol "ARRPB." Saul Centers Inc.'s $125 million of 6.875% series C cumulative redeemable preferreds also listed, under the ticker "BFSPC."

Saul priced Jan. 30.

The Armour issue was up 19 cents at midday at $24.79. Saul's preferreds were at $25.84, down from opening levels of $26.00.

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