Taubman prices new issue of series J cumulative preferreds; Dynex Capital, DDR list on NYSE

By Stephanie N. Rotondo

Phoenix, Aug. 3 - Preferreds held up Friday even as a new jobs report indicated that unemployment had ticked up for July.

The report resulted in "confidence that we'll see QE3 now" come September, a trader said.

Another market source said that volume was "not good, but for a Friday in the summer, it was not so bad either."

Taubman Centers Inc. priced $175 million of 6.5% series J cumulative redeemable perpetual preferred shares on Friday.

The deal was upsized from $75 million and came at the low end of talk. However, a trader said the issue was not performing fabulously.

Meanwhile, several recent issues listed on the New York Stock Exchange during the day's session, including Dynex Capital Inc.'s 8.5% series A cumulative redeemable preferreds and DDR Corp.'s 6.5% class J cumulative redeemable preferreds.

A trader also remarked that Southern California Edison Co. filed a shelf registration on Friday. The shelf specifically mentions preferreds, leading the trader to speculate that "maybe we'll see another deal from them next week."

Taubman prices new deal

A trader said Taubman Centers' new 6.5% series J cumulative redeemable preferreds were "kind of weak" at $24.68 bid, $24.82 offered, though he added that the underlying common stock was "doing well."

The common stock (NYSE: TCO) increased 81 cents, or 1.03%, to close at $79.41.

The trader also noted that the size of the deal indicated that the company will likely be able to redeem in full both its series G and H preferreds.

The 7.625% series H cumulative redeemable preferreds (NYSE: TCOPH) closed down 12 cents at $25.30. The 8% series G cumulative redeemable preferreds (NYSE: TCOPG) ended down a nickel at $25.40.

Taubman will apply to list the new preferreds on the NYSE under the ticker symbol "TCOPJ." Settlement is expected Aug. 14.

Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC are the joint bookrunners. PNC Capital Markets LLC is the co-manager.

Dynex, DDR list on NYSE

Dynex Capital and DDR officially listed on the NYSE on Friday.

Dynex Capital's 8.5% series A cumulative redeemable preferreds listed under the ticker symbol "DXPA." They were trading up 59 cents, or 2.34%, to $25.84.

The $50 million issue priced July 25, and the $5.7 million greenshoe was exercised July 31.

DDR's $200 million of 6.5% class J cumulative redeemable preferreds also listed. The symbol is "DDRPJ." Paper was up 6 cents at $24.89 in midafternoon trading, though that was down from opening levels of $24.93.

The issue priced July 18.

Black & Decker, BB&T active

Recent issues from Stanley Black & Decker Inc. and BB&T Corp. remained active during Friday trading.

Black & Decker's 5.75% junior subordinated debentures due July 25, 2052 (NYSE: SWJ) dropped 4 cents to $25.74.

BB&T's 5.625% series E noncumulative perpetual preferreds (NYSE: BBTPE) held steady at $25.27.

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