E*Trade deal launches but not priced; Sotherly silent; Legg Mason, Seaspan list on NYSE

By Stephanie N. Rotondo

Seattle, Aug. 16 – It was a subdued trading day on Tuesday, according to market sources.

“It’s pretty quiet,” a trader said at mid-morning. “Think it’s going to be a quiet afternoon.”

No new issues were announced as of mid-morning and the market was still waiting for deals from Sotherly Hotels Inc. and E*Trade Financial Corp. to price.

A trader said that E*Trade’s planned offering of up to $400 million $1,000-par series A fixed-to-floating rate noncumulative preferreds were at par bid in the early gray market, though another market source said it moved up to 100.5 bid, 101.25 offered.

The source added that the deal launched “really late in the day” and that pricing had not yet come. However, the price talk was “dramatically scaled back” to 5% to 5.875% from 6.25% to 6.375%.

“A lot of traditional preferred investors dropped out,” the source noted.

The Sotherly deal was also a no-show, and a source said details were not readily available as the offering was “small and illiquid.”

As for recent deals, several were hitting the New York Stock Exchange.

Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due Sept. 15, 2056 was one such issue, listing under “LMHB.”

The paper closed at $24.89.

Seaspan Corp.’s $225 million of 7.875% series H cumulative redeemable perpetual preferred stock also listed, under the ticker “SSWPH.”

A trader said that issue eventually closed at $24.80.

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