Midday Commentary: Corporate Office prices new deal; BGC Partners to sell $25-par notes

By Stephanie N. Rotondo

Phoenix, June 20 - New issues remained a major focus in the preferred market, a trader said midday Wednesday.

Corporate Office Properties Trust priced a $150 million offering of 7.375% series L cumulative perpetual preferred shares. Pricing was at the low end of talk.

A trader saw the paper trading at $24.97.

Meanwhile, BGC Partners Inc. announced plans to sell at least $50 million of $25-par senior notes due June 2042.

Price talk is 8.125% to 8.25%, according to a trader. Pricing is expected Wednesday or Thursday.

That paper was trading at $24.62 in the gray market, a trader said.

"It's just a small deal," he said, noting that investors will likely wait until the issue lists to push it higher.

The trader also saw Qwest Corp.'s $400 million issue of 7% $25-par 40-year notes trading upward, pegging the notes at $25.35.

The deal priced June 14 and has yet to list on the New York Stock Exchange.

"Once it does get a reporting symbol and starts to trade more freely, we should see this move up," the trader said. "It still looks cheap" when compared to Qwest's other 7% notes due 2052 (NYSE: CTX).

Those notes were down 2 cents at $25.74 around midday. Paper had been trading as high as $25.85 during the session.

The trader further commented that the Federal Reserve's decision to extend "Operation Twist" could help out the preferred arena.

"That should make the preferred market look more attractive," he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.