Selective Insurance prices upsized senior notes; Interstate Power falls on redemption news

By Stephanie N. Rotondo

Phoenix, Feb. 5 - Selective Insurance Group Inc. announced a new senior note deal on Tuesday and more new issues were expected to come soon.

A trader said there was a regional bank that was talking about bringing a deal this week. However, it was pushed to next week.

Still, he added that there was talk of another new deal coming on Wednesday, though he didn't have any further details.

As for Selective's new $25-par notes due 2043, a trader saw the issue offered at less 30 cents in the midday gray market.

"I haven't heard any discussion on whether they're going to tweak pricing or not," he said at the time. "But it seems fairly valued; it should price right around where they've said."

Price talk was around 5.875%, which is where the $175 million issue priced after the market close.

The deal was upsized from $100 million.

Meanwhile, Zions Bancorporation's new $171.8 million of 6.3% series G fixed-to-floating rate noncumulative perpetual preferreds - a deal that priced at auction on Jan. 31 - was pegged at $25.30 bid.

In the secondary, Interstate Power & Light Co.'s 8.375% series B cumulative preferred stock (NYSE: IPLPB) was drifting downward after the company said late Monday that it intended to redeem the preferreds on March 22.

At midafternoon, the issue was trading at $25.53, down 20 cents. By the end of business, the issue had managed to recoup some of its losses but still ended down 18 cents at $25.55.

The redemption price is $25.0407, including accumulated dividends after March 15.

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