Fed news could be good for preferreds; TCF announces new issue; Prudential lists on NYSE

By Stephanie N. Rotondo

Phoenix, Dec. 12 - A preferred stock trader said market players were focusing on the Federal Reserve announcement Wednesday morning.

The Fed said that it intended to keep interest rates low until unemployment had declined to around 6% to 6.5%, the trader said. He noted that such actions could be good for the preferred market, especially if more clarity is given on the fiscal cliff dealings.

"We could see a lot more companies come out and issue more debt," he said.

Additionally, he said that the remainder of 2012 might see a few more new issues, though he expected they would be smaller deals, such as the proposed offering that TCF Financial Corp. reported Wednesday.

The Wayzata, Minn.-based company said it planned to sell at least $75 million of series B noncumulative perpetual preferred stock. Price talk was around 6.5%.

The deal priced before the close, coming upsized at $100 million to yield 6.45%.

Also, recent deals from Prudential Financial Corp. and Solar Capital Ltd. listed on the New York Stock Exchange ahead of the trading session.

Additionally, recent issues from Kimco Realty Corp. and Summit Hotel Properties Inc. are set to list on Thursday.

TCF brings new deal

TCF Financial brought a $100 million offering of 6.45% series B noncumulative perpetual preferred stock on Wednesday.

"It's doing well," a trader said ahead of pricing, seeing paper trading around $24.85 in the midday gray market. After pricing, he saw the paper offered at $24.85.

After the market closed, a source saw the issue at $24.70 bid, $24.80 offered.

The source noted that Fitch Ratings had applied a rating to the new securities, but that Moody's Investors Service and Standard & Poor's had not.

New deals list on NYSE

Prudential Financial's $500 million of 5.75% $25-par junior subordinated notes due 2052 priced Nov. 28 and were admitted to the NYSE on Wednesday under the symbol "PJH."

The notes were at $25.11 at midafternoon, versus opening levels of $25.20.

And, Solar Capital's $100 million of 6.75% $25-par senior notes due 2042 listed under the ticker "SLRA."

That issue came Nov. 8. The notes were at $23.15 at midday, compared to an opening price of $23.90.

Meanwhile, Kimco Realty's $175 million of 5.625% class K cumulative redeemable perpetual preferreds are expected to hit the NYSE on Thursday, as are Summit Hotel Properties' $67.5 million of 7.875% series B cumulative redeemable perpetual preferreds.

The Kimco issue priced Nov. 28, and the Summit deal came Dec. 4.

Kimco's symbol will be "KIMPK." Summit's ticker is "INNPB."

Everbank active but weaker

A market source saw Everbank Financial Corp.'s $150 million of 6.75% series A noncumulative perpetual preferred stock - which priced just over a month ago - taking a decent dip in Wednesday trading.

"It was basically somebody looking to lighten the load," he said, adding that the issue topped the day's most active list.

The preferreds (NYSE: EVERPA) fell 15 cents to $24.40.

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