Morning Commentary: Endurance to price noncumulative preferreds; Monday’s deals not yet freed

By Stephanie N. Rotondo

Seattle, Nov. 17 – The primary preferred stock market was looking to churn out more deals on Tuesday, as Endurance Specialty Holdings Ltd. announced a new offering.

The Pembroke, Bermuda-based specialty insurance company said it would price at least $100 million of series C noncumulative perpetual preferred stock. Price talk is around 6.5%, according to a market source.

A trader saw a $24.65 bid for paper in the early gray market.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

The company intends to use the proceeds from the deal to help redeem all $200 million of its outstanding 7.75% series A noncumulative preferreds (NYSE: ENHPA).

That issue was off 25 cents at $25.53 in early Tuesday trading.

Meanwhile, United States Cellular Corp.’s $300 million of 7.25% $25-par senior unsecured notes due 2064 were seen at $24.84 bid, $24.88 offered.

The deal priced Monday, coming upsized from $150 million and at the tight end of 7.25% to 7.375% talk.

U.S. Bancorp’s $750 million of 5.125% $1,000-par series I fixed-to-floating rate noncumulative preferreds – another deal from Monday’s business – were pegged at 100.375 bid, 100.5 offered.

That issue came via U.S. Bancorp Investments Inc., Barclays and Morgan Stanley.

Neither of Monday’s deals had freed to trade as of mid-morning, according to a trader.

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