Oriental Financial's new deal a no-show; S&P rebalance keeps things busy; Goldman comes in

By Stephanie N. Rotondo

Phoenix, Oct. 19 - Rumors that were swirling on Thursday about a possible new deal coming Friday came to fruition, as Oriental Financial Group Inc. announced plans to launch a sale of series D noncumulative perpetual preferreds.

However, a trader said he had neither seen any details on the proposed deal, nor any markets.

"It's pretty quiet," he said of the market generally at midday.

Jeffries & Co. Inc. and Oriental Financial Services are leading the deal.

The deal had not priced as of press time.

Proceeds will be used to fund a portion of the purchase price for the company's BBVAPR Holding Corp. acquisition. Any remaining funds will be used for general corporate purposes.

But the secondary market actually did see a fair amount of liquidity as the week drew to a close. Of the day's most actively traded securities, many could be traced to Standard & Poor's recent rebalancing of its preferred stock index. Those issues were also largely higher on the day.

S&P rebalance ups preferreds

On Oct. 5, S&P "rebalanced" its preferred stock index. Since then, investors whose portfolios are based on said index have been snatching up paper that was added to the index.

Friday's most liquidly traded issues were in fact issues that were recently attached to the index, including JPMorgan Chase & Co.'s 5.5% series O noncumulative perpetual preferreds (JPMPD), which traded up 14 cents to $25.45.

PNC Financial Group Inc.'s recent 5.375% series Q noncumulative perpetual preferreds (NYSE: PNCPQ) were also added to the list and were among the day's most active securities. The preferreds moved up 15 cents to $25.38.

Of other new additions, BB&T Corp.'s 5.625% series E noncumulative perpetual preferreds (NYSE: BBTPE) pushed up 3 cents to $25.60, as Capital One Financial Corp.'s 6% series B noncumulative perpetual preferreds (NYSE: COFPP) earned 2 cents to end at $25.30.

Bank of New York Mellon's 5.2% series C noncumulative perpetual preferreds (NYSE: BKPC) were also higher, trading up 15 cents to $25.28.

The one decliner was Stanley Black & Decker Co.'s 5.75% $25-par junior subordinated debentures due 2052 (NYSE: SWJ). That issue dropped a penny to $26.84.

Goldman Sachs slips

The Goldman Sachs Group Inc.'s recently priced 5.95% series I noncumulative perpetual preferreds were coming in a bit, as a trader pegged the paper at $25.02.

The deal priced Wednesday.

And, PrivateBancorp Inc.'s recent $125 million of 7.125% $25-par subordinated debentures due 2042 continued to hang out in the $25.50 area, according to a trader.

That deal came Oct. 11.

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