AmTrust Financial brings new issue; Gladstone frees; Southern lists; Deutsche Bank lower

By Stephanie N. Rotondo

Seattle, Sept. 20 – Another new preferred stock deal hit the tape on Tuesday, continuing the month’s steady flow.

AmTrust Financial Services Inc. said it was offering $25-par series F noncumulative preferreds, with price talk in a 7% to 7.125% context.

The deal later came at 6.95%, with $250 million of the preferreds being sold.

Morgan Stanley & Co. LLC, UBS Securities LLC, RBC Capital Markets and Keefe Bruyette & Woods Inc. ran the books.

Meanwhile, Gladstone Investment Corp.’s $50 million of 6.25% series D cumulative term preferred stock – a deal priced Monday – freed from the syndicate at 2 p.m. ET.

A source said that when the deal freed, it was bid for at $24.78, with no offers. But he said the preferreds “probably” went out in the mid-$24.80s, adding that the closing price was $24.89.

Janney Montgomery Scott LLC was the bookrunner.

From last week’s business, Southern Co.’s $800 million of 5.25% $25-par series 2016A junior subordinated notes due 2076 began trading on the New York Stock Exchange on Tuesday under the ticker symbol “SOJB.”

The paper closed at $24.99.

Separately, Deutsche Bank AG’s preferreds continued their losing streak on Tuesday, as a new report from the Federal Deposit Insurance Corp. indicated that the German bank’s risk profile is just getting worse.

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