Citigroup, Bank of America $1,000-par preferreds over par; Urstadt’s new issue ‘did OK’

By Stephanie N. Rotondo

Phoenix, Oct. 23 – After ending with a flat tone on Wednesday, preferred stocks were moving up again on Thursday, following the trend of the broader markets.

The Wells Fargo Hybrid and Preferred Securities index closed up 14 basis points.

“[The market] kind of bounced around,” a market source said, adding that volume was “light.”

Citigroup Inc.’s newly priced $1.5 billion issue of 5.8% $1,000-par series N fixed-to-floating rate noncumulative perpetual preferreds were seen trading above par.

A source saw the issue closing at 100.5.

The deal priced Wednesday via Citigroup Global Markets Inc. Price talk was in the 6% area.

Also in the $1,000-par space, Bank of America Corp.’s $1.4 billion of 6.5% $1,000-par series Z fixed-to-floating rate noncumulative preferreds – a deal from Monday’s business – was seen at 101.75 bid, 102 offered early in the session, but another source said the deal closed around 102.25.

BofA Merrill Lynch ran the books on that offering.

Back in the world of $25-par issues, Urstadt Biddle Properties Inc.’s $70 million of 6.75% series G cumulative redeemable preferreds were pegged at $24.90 bid, par offered.

“They did OK,” a trader said.

The issue came early Wednesday. Late Wednesday, the real estate investment trust announced it was calling it 7.5% series D cumulative preferreds (NYSE: UBPPD) on Nov. 21.

On the news, that issue was inching higher, moving up 3 cents in early trades to $25.07.

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