Legg Mason deal upsized, prices; Bank of America taps market; Vanguard Natural units drop

By Stephanie N. Rotondo

Seattle, March 7 – The preferred stock market’s primary space was kicking the week off with not one, but two new issues.

In the $25-par space, Legg Mason Inc. announced and priced a $250 million offering of 6.375% $25-par junior subordinated notes due 2056. The deal was upsized from $150 million and came tighter than the 6.5% to 6.625% initial price talk.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC ran the books.

Meanwhile, in the $1,000-par arena, Bank of America Corp. brought $1 billion of 6.3% series DD fixed-to-floating rate noncumulative perpetual preferred stock.

Price talk was around 6.625%, a source said.

Shortly before the market closed, a source saw the issue trading around 101.375.

BofA Merrill Lynch led that deal.

Dividends will be fixed and payable semiannually through March 10, 2026. At that time, the dividend will begin to float at Libor plus 455.3 basis points and will be payable quarterly.

Late Friday, Vanguard Natural Resources LLC announced that its board of directors had voted to suspend distributions on its 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP).

Come Monday, the units fell $2.07, or 36.19%, to $3.65.

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