Maiden Holdings eyes planned sale of $25-par baby bonds; Bank of America up as stock rises

By Stephanie N. Rotondo

Portland, Ore., March 19 - The preferred stock market was "pretty flat," according to a market source on Monday.

He added that volume was on the modest side.

In the primary, Maiden Holdings North America Ltd. announced plans to sell $25.00-par baby bonds due 2042. It was a small deal, however, and was not generating much hubbub in the gray market.

Meanwhile, Bank of America Corp.'s preferreds were "largely green across the board," a source reported. The firm tone came as the bank's stock hit more than $10.00 for the first time in a while. However, the common stock fell back below $10.00 by day's end.

Maiden plans bond issue

Maiden Holdings North America announced its intent to sell senior unsecured notes due 2042 on Monday.

Maiden Holdings Ltd. fully and unconditionally guarantees the $25.00-par notes.

A trader said the company is expected to issue $50 million of the bonds, with price talk around 8%.

"Looks like it's going to price later today," he said, noting a "very small selling group on this one."

However, by the end of the day, the deal had yet to price.

A source said there was no bid for paper in the gray market, though he heard of offers between $24.67 and $24.70.

"That's not signaling a good deal," he said.

Bank of America Merrill Lynch is the bookrunner.

Proceeds will be used for general corporate purposes, which may include repurchasing trust preferreds or for working capital.

Maiden Holdings is a Hamilton, Bermuda-based reinsurance company.

Winthrop slips on add-on

Also in the primary, Winthrop Realty Trust said it was reopening its 9.25% series D cumulative redeemable preferred shares of beneficial interest.

Original issuance occurred Nov. 28, 2011. The company issued 1.6 million shares at that time.

The issue (NYSE: FURPD) closed down 72 cents, or 2.78%, to $25.17.

Barclays Capital Inc., Stifel, Nicolaus & Co. Inc. and Jefferies & Co. Inc. are the joint bookrunners. Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets Inc. are acting as joint lead managers, and JMP Securities LLC is acting as a co-manager.

Winthrop intends to use proceeds to fund future acquisitions, to pay down credit facility borrowings, to repurchase its common shares and for general working capital purposes, including funding capital expenditures, tenant improvements and leasing commissions.

Winthrop is a Boston-based real estate investment trust.

Bank of America rises

Bank of America's preferreds were generally firmer Monday as the Charlotte, N.C.-based bank's common stock hit $10.00 for the first time in more than seven months.

However, the stock (NYSE: BAC) ended the day below the $10.00 barrier, closing at $9.53, a loss of 27 cents, or 2.76%.

In the preferreds, the most active of the bank's issues was the 8.2% series H depositary shares (NYSE: BACPH). But the issue traded down 2 cents to $25.62.

The 7.25% series J depositary shares (NYSE: BACPJ) were higher, however, gaining 6 cents to $24.7555.

Among the Merrill Lynch-linked paper, the 8.625% series 8 depositary shares (NYSE: BMLPQ) were up 4 cents at $25.66.

And, in Countrywide Financial Corp. securities, the 7% capital securities (NYSE: CFCPB) earned 8 cents, finishing at $24.07.

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