Primary calendar slows, but recent deals dominate trading; Entergy's $25-par notes free up

By Stephanie N. Rotondo

Phoenix, May 16 - The preferred stock primary market was taking a breather on Thursday, as no fresh deals were announced.

"I'm not hearing of anything probably for the rest of the week," a trader said.

However, Zions Bancorporation was slated to complete an online auction of up to $250 million of series I fixed-to-floating rate noncumulative perpetual preferreds later in the day. The auction was scheduled to end at 4 p.m. ET.

A market source said he heard the issue was being priced at 5.8%. Initial price talk was 5.45% to 5.95%.

The source also said the full amount was being sold.

While there were not any new issues during the session, recently priced deals were dominating overall trading, according to a source.

Entergy Louisiana LLC's new $100 million issue of 4.7% first mortgage bonds due 2063 - a $25-par issue - freed early in the day and was pegged at $24.95 at midday.

The notes - which priced Wednesday - were called down a dime at $24.90 as of the market's close.

Qwest Corp.'s $750 million of 6.125% $25-par notes due 2053 - a deal that came Tuesday - was also seen at $24.95 around noon, but the paper rallied and put on 34 cents, ending at $24.30, a source reported.

Another deal from earlier in the week, AXIS Capital Holdings Ltd.'s $200 million of 5.5% series D noncumulative perpetual preferreds moved up 9 cents to finish the day around par.

Also, General Electric Capital Corp.'s $750 million of 4.7% $25-par senior notes due 2053 were active, sliding 50 cents to $24.90.

The issue came May 9.

A trader remarked that he wasn't even seeing many markets for recent $1,000-par issues from UBS AG and Fifth Third Bancorp. He said he believed both were trading just slightly north of par.

UBS sold $1.5 billion of 4.75% fixed-to-floating rate contingent convertible notes on Wednesday. Fifth Third brought $600 million of 5.1% series H fixed-to-floating rate noncumulative perpetual preferreds on Monday.

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