Citicorp started marketing $175 million of adjustable-rate preferred stock on Tuesday. The issue of seven million shares was being marketed with a proposed dividend of 84% of the yield on the three-month U.S. Treasury bill, the 10-year Treasury note, or 30-year Treasury bond, whichever is greatest.
The cumulative securities are expected to get an A2 rating from Moody's Investors Service Inc. and a BBB rating from Standard & Poor's Corp. Pricing is expected by early next week. Merrill Lynch & Co. is the lead underwriter.
A handful of money-center and superregional banks are said to be mulling issues of adjustable preferred stock.
Bankers Trust New York Corp. ended banks' long absence from the adjustable market, with a $200 million issue in March.
