Morning Commentary: New deals from United States Cellular, U.S. Bancorp added to calendar

By Stephanie N. Rotondo

Seattle, Nov. 16 – The preferred stock market was kicking off the week by adding new deals to the pipeline.

In the $25-par space, United States Cellular Corp. announced plans to sell at least $150 million of $25-par senior unsecured notes due 2064.

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

A trader said there was no selling group and noted that Wells Fargo Securities LLC is the lead bookrunner.

“They are generally less aggressive on marketing, so I’m not sure if they will grow this or not,” the trader said.

He saw the issue quoted at $24.80 bid, $24.95 in the early gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC are also acting as bookrunners.

As for the company’s existing issues, the 6.95% $25-par senior notes due 2060 (NYSE: UZA) were off 23 cents, or 1.09%, at $25.36. The 7.25% $25-par senior notes due 2063 (NYSE: UZB) were down 31 cents, or 1.64%, at $25.67.

Meanwhile, U.S. Bancorp was adding to the $1,000-par space with its planned offering of $1,000-par series I fixed-to-floating rate noncumulative perpetual preferreds.

U.S. Bancorp Investments Inc. Barclays and Morgan Stanley are the joint bookrunners.

A trader said he had yet to see any markets for the new issue early Monday nor did he have details on pricing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.