Dominion Resources brings upsized sale of $25-par notes; Bluerock prices, frees to trade

By Stephanie N. Rotondo

Seattle, July 12 – The preferred stock market pared its Tuesday gains by the bell, ultimately ending with a modestly weaker tone.

The Wells Fargo Hybrid and Preferred Securities index was down 2 basis points for the day. The index had been up 8 bps at mid-morning.

In the primary space, the new issue calendar continued to build up.

Dominion Resources Inc. announced plans to sell at least $250 million of 2016 series A $25-par junior enhanced subordinated notes due 2076. The deal later came upsized – $800 million notes were sold – and tighter than initial talk at 5.25%.

Price talk was 5.375% to 5.5%. The deal came via BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Meanwhile, Bluerock Residential Growth REIT Inc. officially priced its offering of series C cumulative redeemable preferreds, a deal first announced on Monday. The company sold $50 million of the preferreds at par to yield 7.625%.

Price talk was initially in the 7.75% area before it was revised to 7.625%.

A trader said he had not seen any markets for the paper, though he said there was a $25 bid in the Street, no offers.

The trader also said that the issue would free to trade later in the day. Another source backed up that speculation, saying he thought the paper had freed up by the end of the day.

The source pegged the preferreds at $25.05 offered.

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