Ally new issue, trust preferreds take focus, drift lower; Telephone & Data holding ground

By Stephanie N. Rotondo

Portland, Ore., March 23 - The preferred stock market continued to focus in on Ally Financial Inc.'s new deal on Wednesday, according to market sources.

The 8.5% series A preferreds priced late Tuesday at par of $25.00. Though they traded up initially, a slow and softer market pushed them down, a trader said, adding that they closed at $24.95 on Wednesday.

The preferreds hit a high of $25.20 to $25.30 on Tuesday, the trader said.

The 8.125% hybrid trust preferreds issued by Ally's GMAC Capital Trust I were also weighed down. They fell 9 cents to $25.50 at midday.

At another desk, a trader said the 8.5% preferreds dropped 13 cents to par, while the 8.125% preferreds came in 10 cents to $25.49.

The 8.5% series A five-year non-cumulative perpetual preferreds were sold by General Motors Co.'s GM Preferred Finance Co. Holdings LLC on Tuesday. The company sold $1.02 billion of the preferreds. Ally did not receive any of the proceeds from the sale.

A trader said Telephone & Data Systems Inc.'s issue of 7% senior notes due 2060 was trading "where it's been" at $24.80.

"I still think that's a little cheap," he said, though he opined that "once it gets listed, it should start trading up."

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