Preferreds improve; Global Ship Lease lists; Taylor Capital’s TruPs called post-merger

By Stephanie N. Rotondo

Phoenix, Aug. 25 – Preferred stocks were firm in Monday trading, according to the Wells Fargo Hybrid and Preferred Securities index.

The index ended the day up 11 basis points. In the broader markets, the S&P 500 index hit 2,000 for the first time, and though it failed to stay at that level, it still ended at record highs.

All the gains of the market came as liquidity was pressured, given that many players are either already away from their desks or are planning an early exit ahead of the Labor Day holiday.

Of the day’s goings-on, Global Ship Lease Inc.’s $35 million of 8.75% series B cumulative redeemable preferreds began trading on the New York Stock Exchange, a market source reported.

The deal came Aug. 13 via Morgan Stanley & Co. LLC. The ticker symbol is “GSLPB.”

The preferreds finished at $24.10. The paper was trading at $24.50 at mid-morning, down from opening levels of $24.60.

The London-based containership owner is using proceeds from that offering to repurchase at a discount all of its outstanding series A preferred shares. Any remaining funds will be used for general corporate purposes.

Meanwhile, a trader said it was “not a surprise” that MB Financial Inc. called Taylor Capital Group, Inc.’s 9.75% trust preferred securities, given that the companies completed a merger on Aug. 18.

The Chicago-based company announced the redemption on Friday for Sept. 22. Come Monday, the preferreds (Nasdaq: TAYCP) were off 47 cents, or 1.82%, at $25.40.

The call price is par plus accrued dividends.

The redemption is being done concurrently with a redemption of the 9.75% junior subordinated debentures due 2032 that MB Financial took over from Taylor Capital as part of the combination.

Also on the back of the merger, Taylor Capital’s 8% series A noncumulative preferred stock changed its symbol to “MBFIP,” as previously reported.

Those shares – which trade on the Nasdaq Global Select Market – ended the day up 46 cents, or 1.67%, to $28.07.

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