U.S. Cellular upsizes senior notes offering; State Street’s recent deal admitted to NYSE

By Stephanie N. Rotondo

Phoenix, Dec. 1 – Preferred stocks were mildly volatile in early trading but ended in a slow and steady decline as the last month of the year kicked off.

The Wells Fargo Hybrid and Preferred Securities index declined 28 basis points by the end of the day. It was up 1 bp at mid-morning.

In primary goings-on, United States Cellular Corp. brought an offering of $275 million 7.25% $25-par senior notes due 2063.

Price talk was 7.25% to 7.375%, according to a market source.

The deal was upsized from $200 million.

The source pegged the issue at less 40 bid in the early gray market. Another source saw the issue at $24.70.

Late in the session, the issuer sold $275 million of the $25-par notes at par to yield 7.25%. The notes become callable beginning Dec. 8, 2019.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC are running the books.

The Chicago-based wireless telecommunications company will use proceeds for general corporate purposes.

Meanwhile, State Street Corp.’s $750 million of 6% series E noncumulative preferreds – a deal priced Nov. 18 – listed on the New York Stock Exchange on Monday.

The ticker symbol is “STTPE.”

Paper was trading at $25.01 at mid-morning. But as the market dwindled, so did the preferreds, which finished the day off 4 cents at $24.98.

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