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RenaissanceRe prices 5.375% preference shares; Ladenburg still a no-show; Callon ahead
By Stephanie N. Rotondo
Phoenix, May 20 - RenaissanceRe Holdings Ltd. kicked the week off by announcing a new issue of preference shares on Monday.
Price talk on the deal is around 5.375%, according to a trader.
"It's trading strong," he said, seeing the paper moving between less 15 cents and less a nickel.
He remarked that he was not hearing any chatter regarding a price revision.
And in fact, the issue came right at 5.375% shortly before the market closed, according to a source. The company sold $275 million of the preference shares.
A market source pegged the issue at $24.90 post-pricing.
Proceeds will be used to redeem all outstanding 6.6% series D preference shares. Should there be any funds left over, the company will then call all or part of its 6.08% series C preference shares.
The series Ds (NYSE: RNRPD) ended the day down 13 cents at $25.47. The Cs (NYSE: RNRPC) fell 12 cents to $25.41.
Meanwhile, Ladenburg Thalmann Financial Services Inc.'s proposed new issue of at least $50 million series A cumulative perpetual preferreds was expected to price after the market closed on Monday.
"I heard they're closing the books later this afternoon," a trader said. Price talk on the issue -which was first announced on Tuesday - was around 8%, he said.
"Oversubscribed is the word," the trader added.
But no details emerged after the market closed, and one source said the issue was "very quiet."
"[You] almost have to assume it is pulled from the market," he said.
As for the coming week's calendar, the trader said he expected things would be "pretty busy," even with an upcoming three-day weekend.
There was already at least one deal on tap for the week, an offering of $50-par series A cumulative preferreds from Callon Petroleum Corp.
Janney Montgomery Scott LLC, Stern Agee & Leach and MLV & Co. are the joint bookrunning managers. Co-managers are Dougherty & Co. LLC and Northland Capital Markets.
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