Midday Commentary: Market sees midweek rebound; Citigroup's 6.875% preferreds list on NYSE

By Stephanie N. Rotondo

Phoenix, Nov. 6 - Preferred stocks were rebounding slightly during midweek trading.

According to the Wells Fargo Hybrid and Preferred Securities index, the market was up 4 basis points shortly before midday. A trader also noted that the "long bond" was flat.

Citigroup Inc.'s $1.3 billion issue of 6.875% series K fixed-to-floating rate noncumulative preferreds - a deal that came Oct. 24 - was officially admitted to the New York Stock Exchange on Wednesday under the ticker symbol "CPK."

The paper was trading up 2 cents at $24.98.

Meanwhile, Seaspan Corp.'s 7.95% series D cumulative redeemable preferreds were regaining some lost ground. The preferreds (NYSE: SSWPD) were up 13 cents, trading at $24.72.

The preferreds had fallen over 3% in the previous session after the Hong Kong-based containership company said it was pricing an add-on to the issue. The company sold an additional $50 million in the reopening and underwriters could sell another $7.5 million if they exercise an over-allotment option in full.

The company originally sold $67.5 million of the preferreds on Dec. 6. A $10,125,000 greenshoe was then exercised on Dec. 14, bringing total issuance up to $77,625,000.

Though one market source had opined that Tuesday's drop meant that the add-on would come at a discount, the preferreds were sold at par.

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