Preferreds see gains; 1347 sells $16 million 8% preferreds; Legacy Reserves rebounds

By Abigail W. Adams

Portland, Me., Feb. 23 – 1347 Property Insurance Holdings Inc. priced a downsized offering of $16 million, or 640,000 shares, of 8% series A perpetual cumulative preferred stock at $25.00 per share after the market close Friday.

The pricing is the first new issue of preferred stock since late January when volatility hit the broader markets.

However, investors did not find the deal from the Tampa, Fla.-based insurance holding company attractive, a market source said.

The preferreds market saw a week of straight gains with both the Wells Fargo Hybrid & Preferred Securities Financial index and the U.S. iShares Preferred Stock ETF up at the market close Friday.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.38% and the U.S. iShares Preferred Stock ETF was up 0.32% at the market close.

Dominion Resources’ 5.25% series A enhanced junior subordinated notes due 2076 saw heavy trading action on Friday, which pushed the notes up. The 5.25% notes had already eclipsed their three-month average trading volume less than two hours after the opening bell.

Legacy Reserves’ 8% series A and B fixed-to-floating rate cumulative redeemable preferred units were also up in high-volume trading on Friday. The Midland, Texas-based limited partnership focused on the acquisition and development of oil and natural gas properties released its fourth-quarter and year-end reports on Wednesday.

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