Preferred stocks firm; NextEra Energy prices upsized deal; recent deals list on NYSE

By Stephanie N. Rotondo

Seattle, May 31 – Preferred stocks were ticking higher in the final trading session of the month.

The Wells Fargo Hybrid and Preferred Securities index ended up 8 basis points. The index was up 4 bps at midday.

However, a trader noted that activity was somewhat muted.

The new issue space did see one new deal, a $500 million offering of 5.25% $25-par junior subordinated debentures due 2076 from NextEra Energy Capital Holdings Inc.

The deal was upsized from $200 million and priced below the initial 5.375% to 5.5% price talk.

Toward the end of the day, a market source saw the paper offered at $24.83.

On the heels of the new issue, the 5% series J junior subordinated debentures due 2073 (NYSE: NEEPJ) retreated 27 cents, or 1.05%, to $25.45.

The new notes will be unconditionally and irrevocably guaranteed by NextEra Energy Inc.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Recently priced issues were seen hitting the New York Stock Exchange on Tuesday.

Government Properties Income Trust’s $300 million of 5.875% $25-par senior unsecured notes due May 1, 2046 were given a symbol, “GOVN.”

Meanwhile, W.R. Berkley Corp.’s $290 million of 5.75% $25-par subordinated debentures due June 1, 2056 also began trading on the NYSE. The ticker is “WRBPD.”

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