| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for Bank of America Corp. > News item |
Morning Commentary: AmTrust plans new deal; older issues weaken; CHS preferreds near par
By Stephanie N. Rotondo
Phoenix, Sept. 9 – The primary preferred stock market saw another deal added to the calendar Tuesday as AmTrust Financial Services Inc. announced an offering of at least $75 million series C noncumulative preferreds.
Morgan Stanley & Co. LLC, UBS Securities LLC and J.P. Morgan Securities LLC are the bookrunning managers. The preferreds are expected to price in a 7.625% to 7.75% context.
A trader said he was seeing the issue around $24.65 in the early gray market.
“It put some selling pressure on the original two [preferred stock series],” the trader noted, deeming the preferreds down 30 cents to 40 cents.
The 6.75% series A noncumulative preferreds (NYSE: AFSIPA) were down 31 cents, or 1.34%, in early trading to $23.14. The 7.25% series B noncumulative preferreds (NYSE: AFSIPB) were off 40 cents, or 1.61%, at $24.30.
Proceeds from the new issue will be used for general corporate purposes, which may include working capital, capital expenditures or strategic acquisitions.
Meanwhile, CHS Inc.’s new $475 million issue of 6.75% series 3 class B reset rate cumulative redeemable preferreds – a deal that priced late Monday, coming upsized from $250 million and at the tight end of talk – were pegged at $24.92 at mid-morning.
Among other recently priced deals, Invesco Mortgage Capital Inc.’s $150 million of 7.75% series B fixed-to-floating rate cumulative redeemable preferreds were trading at $24.72, a trader said, while Bank of America Corp.’s $1 billion of 6.625% series W noncumulative perpetual preferreds were offered at $24.87.
Invesco came Thursday and Bank of America priced Sept. 2.
Overall, the preferred market was softer as Tuesday’s session began.
The Wells Fargo Hybrid and Preferred Securities index was down 13 basis points at mid-morning.
© 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.