Miller Energy prices add-on to 10.75% cumulative preferreds, paper dips; Saratoga frees up

By Stephanie N. Rotondo

Phoenix, May 7 - The primary preferred stock market was not seeing much in the way of new deals on Tuesday.

A trader said he wasn't even hearing plans for upcoming issues.

However, Miller Energy Resources Inc. did price a $12.5 million add-on to its 10.75% series C cumulative redeemable preferreds (NYSE: MILLPC). The "best-efforts" offering was first announced on Monday.

The additional preferreds were sold at $22.25 each, which was a slight discount to Monday's closing share price.

As of Tuesday midday, the preferreds were down 31 cents, or 1.39%, at $22.05. The preferreds came back a little by the end of business, ending off only 21 cents at $22.15.

Meanwhile, Saratoga Investment Corp.'s $42 million of 7.5% $25-par fixed-rate notes due 2020 - a deal that priced Friday - finally freed to trade in early Tuesday trading.

A trader quoted the issue at $24.90 bid, $25.10 offered as of midday.

In the secondary space, Royal Bank of Scotland Group plc's 6.08% noncumulative guaranteed trust securities (NYSE: RBSPG) saw heavy volume, as the shares earned over 1% on the day.

A market source said the issue has been busy since the company's earnings release, given that the Edinburgh-based bank said it intended to begin paying dividends on the preferreds in June.

The paper closed at $23.36 on Tuesday, up 24 cents, or 1.04%.

Overall, the preferred market was strong, attributed to "decent bank earnings from Europe, which moved into a really strong equity market," a market source said.

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