Validus Holdings prices $25-par issue tight to talk; Maiden’s recent deal firms; NGL lower

By Stephanie N. Rotondo

Seattle, June 12 – The preferred stock primary market was wasting no time getting the pipeline flowing on Monday as Validus Holdings Ltd. brought a $250 million sale of 5.8% $25-par series B noncumulative preference shares.

The deal was increased from an expected $150 million.

Price talk on the issue was 5.875%, a market source reported. Notably, the company already has an issue with a 5.875% coupon, the 5.875% series A noncumulative preference shares (NYSE: VRPrA).

That issue slipped 9 cents to $25.36.

As for the new issue, it was seen at $24.94 bid, $24.99 offered just prior to pricing.

Earlier in the day, a trader saw the new preference shares at $24.85 bid in the gray market.

As to the ending market, a source noted that the quote was “better than most $25-par preferreds.”

BofA Merrill Lynch and Morgan Stanley & Co. LLC ran the books.

As for deals from the previous week, Maiden Holdings Ltd.’s $150 million of 6.7% series D noncumulative preference shares – a deal priced Thursday – were pegged at $24.98, a gain of 7 cents on the day.

The preference shares are trading under a temporary symbol, “MDNHF.”

From Tuesday’s business, NGL Energy Partners LP’s $185 million of 9% class B fixed-to-floating rate cumulative redeemable preferred units finished the day at $24.80. That compared to $24.87 on Friday and $24.95 at the open.

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