Dairy Farmers sells $150 million perpetual preferreds; Southern Co., Aspen improve

By Stephanie N. Rotondo

Seattle, Sept. 15 – A new preferred stock issue hit the market early Thursday, coming as a bit of a surprise.

On Wednesday, a trader had reported that the pipeline was closed for the week, though more deals were expected to emerge next week.

Dairy Farmers of America Inc. said it planned to sell $100 million of series C cumulative perpetual preferreds, with price talk at 7.5%. The deal priced at 7.125%, with $150 million of the $100-par preferreds being sold.

A market source pegged the paper at around 100.5.

BofA Merrill Lynch and J.P. Morgan Securities LLC led the Rule 144A deal.

As for deals from earlier in the week, both the Southern Co.’s $800 million of 5.25% $25-par junior subordinated notes due 2076 and Aspen Insurance Holdings Ltd.’s $225 million of 5.625% noncumulative perpetual preference shares were seen at $24.90 bid at mid-morning.

Sothern came Monday and Aspen followed on Tuesday. Both issues have freed to trade.

Meanwhile, Entergy Mississippi Inc.’s $260 million of 4.9% $25-par first mortgage bonds due 2066 – a deal from Sept. 8 – are slated to appear on the New York Stock Exchange on Friday, according to a market source.

The ticker symbol will be “EMP.”

A trader pegged the issue at $24.75 in early trading.

The Wells Fargo Hybrid and Preferred Securities index was down 5 basis points at the bell. It was down 10 bps earlier in the session.

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