Market awaits fiscal cliff deal; SunTrust Financial's new noncumulative issue nears par

By Stephanie N. Rotondo

Phoenix, Dec. 17 - The preferred stock market had a case of the Mondays - or perhaps the "fiscal cliffs" - according to a trader.

"It's very quiet across the board," the trader said. He remarked that the market "could be taking a breather or cleaning up," though he also noted that the ongoing fiscal cliff talks were likely playing a role.

"People are wondering how it will affect dividends and taxation," he said.

As if to prove how quiet dealings were, the market ended flat, on low-volume trading, according to a market source.

After seeing at least one deal per day in the previous week, no new issues were announced on Monday. It is expected that the primary arena will nearly grind to a halt until the new year.

But in recent deals, SunTrust Banks Inc.'s $450 million of 5.875% series E noncumulative perpetual preferreds "moved up a little bit," a trader reported.

That issue priced Thursday and freed to trade on Friday.

SunTrust nears par

A trader saw SunTrust Banks' new 5.875% series E noncumulative preferreds moving up during Monday's session.

At midday, he quoted the issue at $24.90 bid, par offered.

After the market closed for the day, a market source said the preferreds dominated trading, with well over 4 million shares changing hands.

He deemed the paper up 14 cents at $24.92.

The Atlanta-based bank priced the $450 million deal on Thursday. It freed the syndicate on Friday.

Seaspan active; TCF gains

Among recent deals, Seaspan Corp.'s $67.5 million of 7.95% series D cumulative redeemable preferreds - a deal that came Dec. 6 - was pegged at $24.80 bid, $24.87 offered.

On Friday, the Hong Kong-based containership company said the deal's greenshoe had been fully exercised, bringing total issuance up to $77.6 million.

Meanwhile, TCF Financial Corp.'s $100 million of 6.45% series B noncumulative perpetual preferreds rose 12 cents to $24.87. That issue was also among the day's most active, according to a market source.

The Wayzata, Minn.-based bank holding company brought the deal on Wednesday.

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