Morning Commentary: New issue pipeline stalls; recent deals trade; Monmouth issue admitted to NYSE

By Stephanie N. Rotondo

Seattle, Sept. 14 – The preferred stock market primary pipeline was slowed on Wednesday, as no new deals were announced.

Furthermore, a trader said he was hearing that there would be no additional new issues for the remainder of the week. He did note that the buzz was that at least a couple deals were coming next week.

As for the current week’s deals, Aspen Insurance Holdings Ltd.’s $225 million of 5.625% noncumulative perpetual preference shares were seen at $24.75 bid, $24.80 offered at mid-morning.

The issue priced Tuesday, coming upsized from $150 million and at the tight end of talk. BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Barclays ran the books.

The Southern Co.’s $800 million of 5.25% $25-par junior subordinated notes due 2076 – a deal from Monday that upsized from $250 million and on the tight end of talk – were meantime pegged at $24.82 bid, $24.87 offered. A trader noted that the issue had been at $24.85 bid, $24.90 offered earlier in the session.

From last week, Monmouth Real Estate Investment Corp.’s $135 million of 6.125% series C cumulative redeemable preferred stock began trading on the New York Stock Exchange under the ticker symbol “MNRPC.”

The paper was trading at $24.66 at mid-morning, down from opening levels of $24.74.

The issue came Sept. 6 via RBC Capital Markets, BMO Capital Markets and J.P. Morgan Securities LLC.

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