STAG Industrial on tap; ‘big deal’ could come soon; AmTrust, Legg Mason, BB&T eyed

By Christine Van Dusen

Atlanta, March 9 – STAG Industrial Inc. on Wednesday prepped a new issue of preferred stock as market-watchers awaited another deal – something “big,” according to market sources.

“I'm hearing a big deal is coming tomorrow – no industry or names, but it's going to be a large deal, so it's likely to be with a bank or insurance company,” a trader said.

In trading, AmTrust Financial Services Inc.’s Tuesday deal – $125 million of 7¾% series E noncumulative perpetual preferred stock – hovered between $24.60 and $24.65 after being quoted in the gray market at $24.65 bid, $24.70 offered.

“I'm guessing that will probably stay in syndicate until tomorrow morning,” another trader said.

Price talk was 7.75% to 7.875%, according to one market source. The deal came upsized from $75 million.

Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Keefe Bruyette & Woods Inc. is joint lead manager, and RBC Capital Markets LLC, William Blair & Co., JMP Securities LLC and Compass Point are the co-managers.

From Monday’s business, Legg Mason Inc.’s $250 million of 6.375% $25-par junior subordinated notes due 2056 traded at $24.90 to $24.95 on Wednesday.

Among the deals that priced last week, BB&T Corp.’s $425 million of 5.625% series H noncumulative perpetual preferreds were spotted at $24.90 on Wednesday after closing Tuesday at $24.82.

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