American Financial prices upsized $25-par debentures; CHS lists; Realty Income plans call

By Stephanie N. Rotondo

Phoenix, Sept. 16 – American Financial Group Inc. announced and priced an offering of $25-par subordinated debentures due 2054 on Tuesday.

The deal came upsized at $150 million – up from $100 million – at par to yield 6.25%.

Initial price talk was 6.25% to 6.375%, according to one market source.

“It was well-received,” a trader said.

The company’s existing notes were mixed on the news.

The 6.375% senior notes due 2042 (NYSE: AFW) were down in early trading but managed to turn positive by day’s end, closing up 14 cents at $25.70. The 7% senior notes due 2050 (NYSE: AFQ) were meantime weaker, ending down 9 cents to $26.17.

Both issues saw above-average trading on the day.

A trader said CHS Inc.’s $475 million of 6.75% series 3 class B reset rate cumulative redeemable perpetual preferred stock was “moving up nicely” as the issue began trading on the Nasdaq Stock Exchange.

The shares closed at $25.20, which compared to opening levels around $25.05.

The deal came Sept. 8, upsized from an expected $250 million. The ticker symbol is “CHSCM.”

BofA Merrill Lynch and Wells Fargo Securities were the bookrunners.

Realty Income Corp. plans to redeem its 6.75% monthly income class E cumulative redeemable preferreds with proceeds from a $250 million offering of new notes, the company said Tuesday.

The preferreds (NYSE: OPE) closed down 55 cents, or 2.13%, at $25.23.

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