Primary quiet as month closes out; U.S. Bancorp's issue frees to trade; recent issues firm

By Stephanie N. Rotondo

Phoenix, April 30 - No new preferred stock issues were announced Tuesday as April came to a close.

From Monday business, U.S. Bancorp's $500 million of 5.125% series H noncumulative perpetual preferreds freed from the syndicate in early trading. A trader said the paper was offered at $25.12, though he had seen the issue trade in a range of $25.05 to $25.15.

Another market source placed the issue at par bid, $25.10 offered.

Meanwhile, there was "not much action" in Zions Bancorporation's newly priced $100 million issue of 5.75% series H fixed-rate noncumulative perpetual preferreds.

The deal priced via an online auction on Monday. The auction was originally slated to go through Tuesday but was shortened due to better-than-expected demand.

A trader saw the new issue offered at $24.84, while another said paper had softened once it freed to trade, seeing it at $24.60.

He attributed the decline to "technical issues," possibly being a broker-dealer - or several - that bought the securities without having actually sold them to accounts.

Among other recently priced issues, W.R. Berkley Corp.'s 5.625% $25-par debentures due 2053 - a $350 million deal that came Thursday - were pegged at $25.05 at midday. A market source said the issue was among the day's most active.

The source said the issue closed flat at par.

Also on the list was BB&T Corp.'s $450 million of 5.2% series G noncumulative perpetual preferreds - a deal that came Wednesday - which were "hanging" around $24.90, according to a trader. Another source called the issue steady at $24.95.

Also from the previous week, Teekay Offshore Partners LP's $150 million of 7.25% series A cumulative redeemable preferred stock units were firm at $25.48, while CYS Investments Inc.'s $200 million of 7.5% series B cumulative redeemable preferreds were quoted at $24.80 bid, $24.82 offered.

After the bell, a source deemed the CYS preferreds down a penny at $24.83.

Both issues priced April 23.

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