Preferreds improve; National General brings upsized new issue; Gabelli frees to trade

By Stephanie N. Rotondo

Seattle, June 29 – The preferred stock market continued to trade firmly on Wednesday, though the gains were modest compared to the previous day’s session.

The Wells Fargo Hybrid and Preferred Securities index finished 13 basis points higher. The index was up 16 bps at mid-morning. It closed up 93 bps on Tuesday.

The positive tone of the market was helping the primary, as National General Holdings Corp. added a deal to the calendar. The New York-based insurance company said it was selling a minimum of $50 million of series C noncumulative preferreds, with price talk at 7.625%.

The deal came upsized at $175 million and priced at par to yield 7.5%.

Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc. are running the books.

Meanwhile, Gabelli Dividend & Income Trust’s $100 million of 5.25% series G cumulative preferreds – a deal priced Tuesday – had freed to trade as of mid-morning, according to market sources.

One trader pegged the issue at par bid, $25.25 offered. Another saw the paper at $25.05 bid, $25.20 offered.

Morgan Stanley and Wells Fargo Securities LLC were the joint bookrunners. G. research LLC was the co-manager.

Proceeds will be used to purchase portfolio securities in accordance with the fund’s investment objective and policies.

Gabelli is a Rye, N.Y.-based investment firm.

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