Midday Commentary: Preferred calendar getting busier; PPL, Astoria Financial planning new issues

By Stephanie N. Rotondo

Phoenix, March 12 - New issues in the preferred stock market were heating up on Tuesday, and the trend was expected to continue.

"We're sure there's going to be more deals all week," said one preferred stock trader.

PPL Capital Funding Inc. announced an offering of $25-par 2013 series B junior subordinated notes due April 30, 2073 early in the session. Price talk was 6% to 6.125%.

"It's all done," a trader said of the deal, adding that it did not sound like the size was going to be increased.

He noted that the new issue was "doing pretty well," quoting the notes at $24.85 bid, $24.90 offered in the midday gray market.

Astoria Financial Corp. also announced a new deal, an offering of at least $125 million series C noncumulative perpetual preferreds. Price talk on that offering was 6.5%.

However, a trader said he had not seen any markets in it.

From Monday, Pebblebrook Hotel Trust's new $90 million issue of 6.5% series C cumulative redeemable preferreds was seen at $24.85 bid at midday.

However, a trader said he hadn't seen any quotes for Taubman Centers Inc.'s $150 million of 6.25% series K cumulative redeemable preferreds.

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