Midday Commentary: BB&T plans new issue; Citi's $1,000-par paper holds at par; CYS frees up

By Stephanie N. Rotondo

Phoenix, April 24 - The new issues kept coming Wednesday as BB&T Corp. said it was selling at least $200 million of series G noncumulative perpetual preferreds, which were talked around 5.25%.

A trader quoted the issue at $24.75 bid, $24.77 offered in the midday gray market, noting that the paper was trading up to the offered side.

From Tuesday business, Citigroup Inc.'s benchmark $1.25 billion of 5.35% $1,000-par series D fixed-to-floating rate noncumulative preferreds were holding around par, according to a trader.

Also, CYS Investments Inc.'s $200 million of 7.5% series B cumulative redeemable preferreds freed up after pricing during the previous session. A trader placed that issue at $24.75 bid.

And, Teekay Offshore Partners LP's $150 million of 7.25% series A cumulative redeemable preferreds were "moving on up," a trader said. He saw a trade at $25.20 around midday but added that there was a $25.10 bid earlier in the day. He speculated the market was closer to the $25.10 mark.

Teekay priced the deal early Tuesday, and it freed to trade shortly thereafter.

In new listings, First Republic Bank's $175 million of 5.5% series D noncumulative perpetual preferreds - a deal that priced April 16 - were admitted to the New York Stock Exchange on Wednesday.

The ticker symbol is "FRCPD." Paper was trading at $24.85 at midday, up 2 cents from the previous close.

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