Midday Commentary: Preferreds firm; Black & Decker lists on NYSE; REIT redemptions abound

By Stephanie N. Rotondo

Phoenix, July 26 - Preferred stocks were ticking up Thursday, though there were "no real big movers," a trader said.

Stanley Black & Decker Inc.'s $750 million of 5.75% $25-par junior subordinated notes due 2052 officially listed on the New York Stock Exchange Thursday, as was expected.

The ticker symbol is "SWJ." The deal priced July 18.

The notes were trading at $25.65 at midday, down from opening levels of $25.72.

Meanwhile, Commonwealth REIT's recent issue - $175 million of 5.75% $25-par senior notes due Aug. 1, 2042, which priced July 20 - was seen at $24.65.

The Newton, Mass.-based real estate investment trust said late Wednesday that it was redeeming its 7.125% series C cumulative redeemable preferreds on Aug. 24 at par plus accrued dividends.

A trader noted that the issue goes ex-dividend on July 30.

The Cs (NYSE: CWHPC) were trading down 3 cents to $25.44 at midday.

A few other redemptions were announced during Thursday's session. Los Angeles-based REIT MPG Office Trust Inc. said it had redeemed nearly 4 million of operating partnership units held by Robert F. Maguire III and related entities. On that news, the company's 7.625% series A cumulative redeemable preferreds (NYSE: MPGPA) were trading actively and higher, rising $2.66, or 15.47%, to $19.85 in midafternoon trading.

Vornado Realty Trust also said it was calling $255 million of securities, including $180 million of 7% series D-10 and 6.75% series D-14 cumulative redeemable preferred units and $75 million of the 7% series E cumulative redeemable preferreds.

The redemption will occur Aug. 16 and will result in a $3.1 million decrease in annual dividend costs, as well as a $12 million gain in the third quarter. Proceeds from the company's recent sale of $300 million of 5.7% series K cumulative redeemable preferred shares will fund the call.

The 7% series Es (NYSE: VNOPE) were trading up 8 cents to $25.35. The Ks (NYSE: VNOPK) were up a penny at $24.76.

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