Midday Commentary: Bank of America on tap; Ladenburg prices; RenaissanceRe not yet freed

By Stephanie N. Rotondo

Phoenix, May 21 - The preferred stock primary market continued to be active Tuesday, as Bank of America Corp. announced an offering and Ladenburg Thalmann Financial Services Inc. priced a previously announced deal.

Bank of America said it was selling $1,000-par series U fixed-to-floating rate noncumulative perpetual preferreds. A trader said price talk was around 5.25%, though he had yet to see any markets.

Meanwhile, Ladenburg finally brought its offering of series A cumulative redeemable preferreds. The sale was first announced on May 14.

The issue came in line with the 8% price talk and was upsized to $115 million from $50 million.

A trader said the paper was offered at $24.92, with trades occurring around $24.73.

From Monday business, RenaissanceRe Holdings Ltd.'s $275 million of 5.375% $25-par series E noncumulative preference shares had yet to free up, according to a trader. He pegged the issue between $24.85 and $24.95.

And, in new listings, General Electric Capital Corp.'s $750 million of 4.7% $25-par senior notes due 2053 were admitted to the New York Stock Exchange on Tuesday.

The deal priced May 9. The ticker symbol is "GEK."

The notes were trading at $24.86 at midday, versus opening levels of $24.90.

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