National Retail's new issue frees to trade, hits par; financials dominate market, trend higher

By Stephanie N. Rotondo

Portland, Ore., Feb. 16 - The preferred stock market "started off on a decidedly negative note," a market source said Thursday, as investors continued to worry about the "Greek situation."

However, "good economic numbers," including a decent unemployment report, helped the market turn around to end flat at worst and modestly stronger at best.

With a three-day weekend around the corner, sources speculated that Friday will be on the quiet side barring any major change in the broad markets or major news.

The primary market continued to bustle as National Retail Properties Inc.'s new 6.625% preferred stock freed from the syndicate. The deal instantly traded up to par and above.

National Retail issue frees

National Retail Properties' $250 million issue of 6.625% series D cumulative redeemable preferreds freed to trade Thursday.

The upsized deal priced Wednesday at the low end of price talk.

"It's done pretty well," a market source said. He quoted the issue at $24.95 bid, par offered.

Another trader had pegged the paper at $25.05 shortly before the bell.

The company sold 10 million depositary shares for $25.00 each. Each depositary share represents a 1/100th interest in the newly designated perpetual preferreds. Underwriters have an over-allotment option for 1.5 million depositary shares, or $37.5 million.

Proceeds will be used for the redemption of the company's 7.375% series C cumulative redeemable preferreds (NYSE: NNNPC) and for general corporate purposes, which may include paying down debt under a credit facility.

The called preferreds traded down 2 cents to $25.48.

National Retail is an Orlando, Fla.-based real estate investment trust focused primarily on high-quality retail properties.

Among other REITs, CBL & Associates Inc.'s 7.375% series D cumulative redeemable preferred shares (NYSE: CBLPD) traded active and better, closing up 8 cents at par.

There was no fresh news out on the Chattanooga, Tenn.-based company.

Financials trade busy, better

Elsewhere, trading in PreferredLand was dominated by financials.

Ally Financial Inc.'s 8.5% trust preferreds (NYSE: ALLYPA) closed up 14 cents at $22.92.

Meanwhile, Citigroup Inc.'s 7.5% tangible dividend enhanced common stock (NYSE: CPH), a $100-par security, moved up $1.64, or 1.73%, to $96.59.

ING Groep NV's preferreds continued to firm a day after the company received approval to sell its ING USA Direct unit to Capital One Financial Corp. Its 8.5% perpetual hybrid capital securities (NYSE: IGK) rose 2 cents to $25.63.

In the Bank of America Corp. complex, Merrill Lynch's floating-rate series 5 noncumulative preferreds (NYSE: BMLPL) inched up a nickel to $19.45.

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