Preferred stocks give up early gains; eBay sells $25-par notes; Senior Housing lists

By Stephanie N. Rotondo

Seattle, Feb. 22 – The preferred stock market was bouncing higher with the broader markets in early Monday trading but retreated by day’s end.

“Oil is up almost $2,” a trader said at mid-morning, adding that the gain in the commodity was helping other commodities improve as well.

The Wells Fargo Hybrid and Preferred Securities index was up 26 basis points at mid-morning but closed off 11 bps.

“I don’t now why the market backed off, but when it was up, it was not the strongest rally as liquidity was light-ish overall, a source commented.

Investors were eyeing a new deal from eBay Inc., a planned $250 million sale of $25-par notes due 2056.

The deal was eventually upsized to $750 million and priced at par to yield 6%. Price talk was also revised to 6% from a 6.125% to 6.25% range initially.

“There is a lot of demand for the name,” a trader said prior to pricing. “This is the first deal they have ever brought like this.”

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

Meanwhile, Senior Housing Properties Trust’s $250 million of 6.25% $25-par senior notes due Feb. 1, 2046 began trading on the New York Stock Exchange, according to market sources.

The ticker is “SNHO.” The deal priced Feb. 10.

Paper was trading at $24.75 bid, $24.80 offered, a trader said.

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