Seaspan prices cumulative preferred stock; Western Alliance taps market; new supply eyed

By Stephanie N. Rotondo

Seattle, June 9 – The preferred stock market’s new issue pipeline continued to flow during Thursday’s session.

Seaspan Corp. brought a $100 million offering of 8.2% series G cumulative redeemable preferreds.

The deal was initially expected to be around $40 million, with price talk in an 8.25% area.

A trader saw the issue “around $24.70” in the early gray market.

RBC Capital Markets LLC, J.P. Morgan Securities LLC, Stifel Nicolaus & Co. Inc. and Incapital LLC are leading the deal.

Proceeds will be used for general corporate purposes.

Also announced Thursday was an offering of at least $100 million $25-par subordinated debentures due 2056 from Western Alliance Bancorporation. The deal came at 6.25% – in line with price talk – with $175 million of the debentures being sold.

“It’s not a well-known bank, but it is a financially solid bank,” one market source noted.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

A trader said the paper was quoted at $24.67 bid, $24.75 offered in the early gray market.

“There’s a lot of new issues to put away,” a trader said, opining that it would take some time for the deals to get put away. “But that’s a good problem to have.”

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