Midday Commentary: Torchmark, Texas Capital to price deals; PS Business Parks' new issue lists

By Stephanie N. Rotondo

Phoenix, Sept. 17 - A preferred stock trader said he heard it is going to be a "busy week" in the primary arena.

"There's probably a couple more deals coming," he said Monday.

Plans for two new issues were announced as the week began. Torchmark Corp. said it will sell $25-par junior subordinated debentures due Dec. 15, 2052, and Texas Capital Bancshares Inc. heralded an offering of $25-par notes due Sept. 1, 2042.

Price talk is around 5.875% on the Torchmark deal and around 6.5% to 6.625% on the Texas Capital issue, according to a trader.

However, the trader said he was "not seeing too many markets" for either issue, seeing the Torchmark paper at $24.70 bid.

As for the Texas Capital securities, the trader said retail investors were snapping it up, adding that the bank is "pretty strong."

Meanwhile, Bank of New York Mellon Corp.'s recent 5.2% series C noncumulative perpetual preferreds were pegged at $24.75 at midday. Also, PNC Financial Services Group Inc.'s 5.375% series Q noncumulative preferreds were seen at $24.58.

BNY Mellon priced Wednesday, and PNC came Friday.

And PS Business Parks Inc.'s 5.75% series U cumulative preferreds listed on the New York Stock Exchange Monday.

The ticker symbol is "PSBPU." The deal priced Sept. 5.

The preferreds were trading at $24.75, down a dime.

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