Maiden Holdings sells $150 million 7.125% preference shares; Endurance preferreds free up

By Stephanie N. Rotondo

Seattle, Nov. 18 – More deals were added to the preferred stock pipeline Wednesday with Maiden Holdings Ltd.’s announcement of a $100 million offering of series C noncumulative preference shares.

The deal came upsized at $150 million and priced at par to yield 7.125%.

The issue was talked in a 7.25% area, according to a market source.

Toward the end of the day, the issue was seen at $24.56 bid. Another trader placed the new shares at $24.60 bid, $24.70 offered in the early gray market.

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

Proceeds will be used to support the Hamilton, Bermuda-based reinsurance company’s business. The new funds might also be used to pay down debt, including the $107.5 million of 8.25% $25-par senior notes due 2041.

Those notes (NYSE: MHNA) were trading down 13 cents to $25.71.

Meanwhile, Endurance Specialty Holdings Ltd.’s new $200 million of 6.35% series C noncumulative preferreds – a deal priced Tuesday – were seen at $24.80 bid, $24.85 offered at mid-morning, closing at $24.83.

The issue freed to trade shortly before noon ET, according to a trader.

Morgan Stanley and Wells Fargo were the bookrunners.

Among other deals from the week, United States Cellular Corp.’s $300 million of 7.25% $25-par senior unsecured notes due 2064 were initially holding in a $24.85 to $24.88 context but retreated to $24.81.

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