Midday Commentary: Glimcher heralds sale of new preferreds; CYS hangs in; ING paper moves up

By Stephanie N. Rotondo

Phoenix, July 31 - Preferred stocks were "printing up," a trader reported at midday on Tuesday.

Glimcher Realty Trust announced plans for a sale of series H cumulative redeemable perpetual preferreds.

A trader said price talk was 7.5% to 7.625%. At least $50 million of preferreds are expected to be issued, though the trader said that "I'm sure it will be bigger than that."

He opined that the deal could get as big as $250 million, considering that the Columbus, Ohio-based real estate investment trust intends to use proceeds to redeem a portion of its outstanding preferreds.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the joint bookrunners.

Meanwhile, CYS Investments Inc.'s $75 million of 7.75% series A cumulative redeemable preferreds were "just hanging" at $24.55 bid, according to a trader. The deal priced Friday.

Away from recent issues, ING Groep NV was actively trading higher. A trader said he didn't see any specific news out on Tuesday that would be driving the paper, though news outlets did report that the bank is getting closer to divesting itself of its Asian unit.

The trader speculated that comments made last week by European Central Bank president Mario Draghi were continuing to help out foreign issuers, noting that some of ING's "laggards" - that is, lower-coupon issues - have "room to move up."

The 7.375% perpetual hybrid capital securities (NYSE: IDG) were up 6 cents at midday at $24.99.

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