Preferred dealings still slow; recent deals from Goldman, BB&T list; Regions calls TruPS

By Stephanie N. Rotondo

Phoenix, Nov. 1 - The preferred stock market remained subdued Thursday as market players continued to deal with the aftermath of Hurricane Sandy.

According to one trader, Morgan Stanley's offices in New York sustained "a lot of water damage." He wondered what effect that might have on the primary market, given that "they do a lot of underwritings."

Still, the trader said he was "assuming we'll see a new issue" due to the Nov. 5 redemptions of several series of Bank of America Corp. trust preferreds.

"It probably won't be until next week, probably after the election," he remarked.

Most of the day's activity centered on recent deals, especially on two new issues that listed for Thursday trading.

The Goldman Sachs Group Inc.'s 5.95% series I noncumulative preferreds were admitted under the symbol "GSPI." The preferreds ended the day at $25.04, down a penny.

The $750 million issue priced Oct. 17.

BB&T Corp.'s $450 million of 5.2% series F noncumulative preferreds - a deal that came Oct. 24 - also listed, under the ticker "BBTPF." That issue was trading at $24.66, down 9 cents.

And, Fifth Street Finance Corp.'s 5.875% $25-par senior notes due 2024 also hit the NYSE, under the symbol "FSCE." However, trading in that particular name was thin.

The notes closed at $24.77, down from $25.12 at the open.

The $75 million issue came Oct. 11.

Regions calls TruPS

Regions Financial Corp. confirmed suspicions on Thursday by announcing that it was redeeming $345 million of its 8.875% trust preferreds.

The issue (NYSE: RFPZ) moved up 4 cents to $25.57.

The market had opined that the Birmingham, Ala.-based bank would call the TruPS after it brought a $500 million issue of 6.375% series A noncumulative perpetual preferreds on Oct. 25.

The recent issue was pegged at $24.80 on Thursday.

The call will take place on Dec. 3.

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