Preferred stocks firm to end week; KKR deal frees to trade; BB&T lists; recent deals busy

By Stephanie N. Rotondo

Seattle, March 11 – The preferred stock market had a strong tone in Friday trading, following the broader markets higher.

The Wells Fargo Hybrid and Preferred Securities index ended 35 basis points higher.

As for the broader market, its gains were attributed to rising oil prices, as well as continued reaction to the European Central Bank’s stimulus program, which was announced Thursday.

For its part, domestic crude oil rose 1.72% to $38.49 a barrel. On Friday, the International Energy Agency opined that oil prices had found a bottom and Baker Hughes reported another drop in active U.S. drill rigs.

That count came in at its lowest level in 75 years.

The primary pipeline quieted down for the session, following two weeks of steady flows. A market source said KKR & Co. LP’s $300 million of 6.75% series A noncumulative perpetual preferred units – a deal priced Thursday – freed during the trading day, quoting the issue at $24.70 bid, $24.80 offered.

Earlier in the day, a trader pegged the new issue at $24.75 bid, $24.80 offered.

Meanwhile, BB&T Corp.’s $425 million of 5.625% series H noncumulative perpetual preferreds began trading on the New York Stock Exchange on Friday.

The ticker symbol is “BBTPH.” The deal priced March 2.

The preferreds were seen at $24.94 in early trading, which compared to opening levels of $25.05. However, the issue came in to settle at $24.89, which was up a penny day over day.

Other recently priced – and recently listed – deals remained actively traded.

eBay Inc.’s $750 million of 6% $25-par notes due Feb. 1, 2056 (Nasdaq: EBAYL) closed at $24.88, which compared to $24.90 at the opening bell. The paper traded as high as $24.95.

Charles Schwab Corp.’s $750 million of 5.95% $25-par series D noncumulative perpetual preferred stock (NYSE: SCHWPD) meantime edged up 2 cents to $25.29.

Southern California Edison Co.’s SCE Trust V’s $300 million of 5.45% fixed-to-floating rate trust preference securities (NYSE: SCEPK) were not as active as the other recent deals but did break through the $26.00 mark in trading. The securities ended at $26.16, down from the intraday high of $26.31, but up 19 cents for the day.

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