Preferreds firm in midweek trading; WhiteHorse to issue $25-par notes; Full Circle slips

By Stephanie N. Rotondo

Phoenix, July 10 - The preferred stock market was mostly firm as the midweek trading session got underway on Wednesday, based on how various preferred stock indexes were preforming.

Still, a trader noted that there was little news out to drive the market one way or another.

The primary saw a small new deal hitting the tape as WhiteHorse Finance Inc. said it would sell a minimum of $30 million of $25-par senior notes.

The Miami-based investment company intends to use the proceeds to reduce outstanding debt.

A trader said he had not heard any details on the new deal.

A market source commented that he was "hearing chatter about [the new issue calendar] building up if things continue to be stable."

Meanwhile, Full Circle Capital Corp. said it had sold an additional $2.4 million of its recently priced 8.25% $25-par notes due 2020. The Rye Brook, N.Y.-based externally managed non-diversified closed-end management investment company originally sold $18.75 million of the notes on June 25.

The paper (Nasdaq: FULLL) closed off a dime at $24.80.

Omnicare paying extra

Omnicare Inc.'s 4% trust preferred income equity red securities - both the series A and B issues - will begin paying contingent interest, the company said Wednesday.

Under the indenture, the preferreds will pay extra dividends in the event that the securities trade over a certain threshold for five days. According to Cameron Hopewell, investor relations for the company, "this is the first period where that threshold was met."

The contingent interest is calculated by averaging the price of the preferreds for the five-day period and then multiplying it by 0.125%. For the first payment, the extra dividend will amount to about 7 cents.

Hopewell said that as long as the preferreds continue to trade above threshold levels, the contingent interest will be payable in future periods as well.

The series As (NYSE: OCRPA) dropped 17 cents to $60.05, while the series Bs (NYSE: OCRPB) declined 21 cents to $60.03.

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