Midday Commentary: Black & Decker outperforms other recent deals; RBS preferreds give up gains

By Stephanie N. Rotondo

Phoenix, July 20 - Stanley Black & Decker Inc.'s new $750 million issue of 5.75% $25-par junior subordinated notes due 2052 continued to trade well in Friday's preferred stock market.

"It's doing very well," a trader said, seeing the notes trading at $25.25 bid, $25.32 offered, which was about in line with where it closed Thursday.

The deal priced Wednesday.

Some other recent deals, however, were not faring as well.

Senior Housing Properties Trust's $350 million of 5.625% $25-par senior notes due Aug. 1, 2052 fell off again Friday, with a trader pegging the issue at $24.15.

The notes priced Tuesday.

"They're really pushing prices," a trader said, referring specifically to CommonWealth REIT's planned issue of at least $150 million of $25-par senior notes due Aug. 1, 2042, which are talked around 5.75%.

That issue was announced Thursday but has yet to price. A trader said he had seen no markets for the issue and a Seeking Alpha article said the deal is not attractive.

Even Invesco Mortgage Capital Inc.'s offering of $135 million 7.75% series A cumulative redeemable preferreds, a deal that priced Thursday after the close, wasn't doing so hot.

A trader said he had seen a $24.60 bid for paper.

Away from recent issues, it remained the Royal Bank of Scotland Group plc show. The preferreds were again declining, as they were on Thursday after running up steadily for the last couple of weeks.

The 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) were down 45 cents, or 2.05%, at $21.55 at midday.

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