Preferreds rise with Treasuries; new Valley National Bancorp, AmTrust deals little moved

By Stephanie N. Rotondo

Phoenix, June 19 – Preferred stocks were firming up in trading on Friday following a rally in the Treasury market.

The Wells Fargo Hybrid and Preferred Securities index ended 12 basis points higher.

In recent deals, Valley National Bancorp’s new $115 million of 6.25% series A fixed-to-floating rate noncumulative preferreds – from Tuesday business – were pegged around $24.90 early in the session. By the bell, the paper had moved back up to par.

AmTrust Financial Services Inc.’s $150 million of 7.25% $25-par junior subordinated notes due 2055 – a deal from June 11 – were meantime seen in a $24.80 to $24.90 context.

A trader said he wasn’t hearing any chatter for next week’s calendar, though he noted that the AmTrust deal could be a harbinger of things to come.

After AmTrust brings a deal, “it’s common for them to bring something in [Maiden Holdings Ltd.] or [National General Holdings Corp.],” the trader remarked.

AmTrust is a major stakeholder in both companies, he noted.

In fact, National General filed a mixed shelf registration on June 12, he said. “So maybe look for that next week,” he posited.

Away from new issues, Winthrop Realty Trust said late Thursday it was redeeming its outstanding 7.75% $25-par senior notes due 2022 on Aug. 15.

Come Friday, the notes (NYSE: WRT) were trading up a nickel to $25.43.

The redemption price is $25.48375, which includes accrued and unpaid interest.

Some preferreds weaken

Though the market had a positive tone Friday, some of the day’s most actively traded and listed securities were weaker but for no apparent reason.

Seaspan Corp.’s 9.5% series C cumulative redeemable preferreds (NYSE: SSWPC), for instance, were off 28 cents, or 1.09%, at $25.40.

“I see no real reason for that,” a market source said.

NorthStar Realty Finance Inc.’s 8.25% series B cumulative redeemable preferreds (NYSE: NRFPB) were also down, declining 42 cents, or 1.73%, to $23.88.

Deutsche Bank AG’s preferreds also ended lower on the day.

The 8.05% trust preferred securities (NYSE: DKT) closed 12 cents weaker at $27.86, while the 7.6% trust preferred securities (NYSE: DTK) slipped 13 cents to $26.75.

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