Preferreds improve; Global Ship Lease lists; Taylor Capital’s TruPs called post-merger

By Stephanie N. Rotondo

Phoenix, Aug. 25 – Preferred stocks were firm in Monday trading, according to the Wells Fargo Hybrid and Preferred Securities index.

The index ended the day up 11 basis points. In the broader markets, the S&P 500 index hit 2,000 for the first time, and though it failed to stay at that level, it still ended at record highs.

Of the day’s goings-on, Global Ship Lease Inc.’s $35 million of 8.75% series B cumulative redeemable preferreds began trading on the New York Stock Exchange, a market source reported.

The deal came Aug. 13 via Morgan Stanley & Co. LLC. The ticker symbol is “GSLPB.”

The preferreds finished at $24.10. The paper was trading at $24.50 at mid-morning, down from opening levels of $24.60.

The London-based containership owner is using proceeds from that offering to repurchase at a discount all of its outstanding series A preferred shares. Any remaining funds will be used for general corporate purposes.

Meanwhile, a trader said it was “not a surprise” that MB Financial Inc. called Taylor Capital Group, Inc.’s 9.75% trust preferred securities, given that the companies completed a merger on Aug. 18.

The Chicago-based company announced the redemption on Friday for Sept. 22. Come Monday, the preferreds (Nasdaq: TAYCP) were off 47 cents, or 1.82%, at $25.40.

The call price is par plus accrued dividends.

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