Montpelier Re upsizes; Kayne Anderson to bring new issue; Ally's series A preferreds fall

By Stephanie N. Rotondo

Portland, Ore., May 3 - New issues started to pick up again in the preferred stock market on Tuesday.

One deal from Montpelier Re Holdings Ltd. priced during the session, while another from Kayne Anderson MLP Investment Co. was announced. A trader said he expects the latter transaction to price on Wednesday.

"With the 10-year [Treasury bonds] trading around 3.25%, the preferreds are creeping up in price," the trader said. "I imagine we'll keep seeing these small deals."

Montpelier Re Holdings priced an upsized offering of 8.875% perpetual preferreds Tuesday.

As previously reported, price talk was in the 9% area, and a trader opined that it would come in the "high-8s."

The market had also expected $75 million, or 3 million shares, of the preferreds to be sold, but the company actually issued $150 million, or 6 million shares.

The price per share is $25.00. A trader said there was a $24.90 bid in the gray market.

"It should do OK," the trader said. "Good yield and small deal."

Though the preferred market was generally steady Tuesday, another market source noted that Ally Financial Inc. - once again the day's most active issue - traded down and on no news.

Ally Financial's 8.125% series A preferreds (NYSE: ALLY-PA) fell 19 cents to $26.01.

The preferreds closed Monday at $26.20 and opened Tuesday at $26.05.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.