Preferreds give up early gains; Wintrust prices new issue; AmTrust lists; RBS declines

By Stephanie N. Rotondo

Phoenix, June 22 – The preferred stock market was initially higher on Monday but came in with the Treasury market by the end of the day.

Still, the preferred space was “outperforming Treasuries dramatically,” a market source remarked.

The Wells Fargo Hybrid and Preferred Securities index ended down 10 basis points. The index was up 4 bps at mid-morning.

The week’s calendar kicked off with a new issue announced by Wintrust Financial Corp., an offering of series D fixed-to-floating rate noncumulative perpetual preferreds.

The deal came at 6.5% – at the tight end of the 6.5% to 6.625% price talk – with $125 million shares being sold.

The deal priced via Incapital LLC and U.S. Bancorp Investments Inc.

Later in the day, a source placed the issue around $24.80.

Dividends will be fixed and payable on the 15th day of January, April, July and October through July 15, 2025. On that date, the issue will begin to float at Libor plus 406 basis points and will continue to be paid on the same dates.

Meanwhile, AmTrust Financial Services Inc.’s 7.25% $25-par junior subordinated notes due June 15, 2055 – a $150 million deal priced June 11 – listed on the New York Stock Exchange on Monday.

The ticker symbol is “AFSS.”

Separately, Royal Bank of Scotland Group plc’s preferreds were getting knocked around and were loweron Monday, just one day ahead of the Edinburgh, Scotland-based bank’s annual shareholders meeting.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.