Saratoga prices $25-par notes; Bank of America improves; NuStar declines; Qwest rises

By James McCandless

San Antonio, Aug. 21 – The preferred market saw new supply on Tuesday as the secondary market saw broad gains.

Saratoga Investment Corp. priced $35 million of $25-par seven-year notes at par to yield 6.25%.

Bank of America Corp.’s 5.875% series HH non-cumulative perpetual preferred stock improved.

NuStar Energy LP’s 7.625% fixed-to-floating rate subordinated notes due 2043 declined amid increased investor attention.

Qwest Corp., a wholly owned subsidiary of CenturyLink, Inc., saw some of its $25-par notes continue to trade up after a Monday redemption notice related to some of the company’s other debt issues.

Saratoga prices

In the primary market, Saratoga sold $35 million of $25-par seven-year notes at par to yield 6.25% after the close on Tuesday.

The offering, which was announced Tuesday morning, came at the tight end of talk for a coupon of 6.25% and 6.375%.

Ladenburg Thalmann & Co., Inc., BB&T Capital Markets and Janney Montgomery Scott LLC are the joint bookrunners. B. Riley FBR, Inc., Compass Point Research & Trading, LLC, National Securities Corp. and William Blair & Co. LLC are joint lead managers.

Bank of America improves

Bank of America’s 5.875% series HH non-cumulative perpetual preferred stock improved and was among the top-volume issues in the secondary market.

The preferreds (NYSE: BACPrK) were up 5 cents to close at $25.49 on volume of about 469,000 shares.

On Monday, the preferreds rose 10 cents.

NuStar down

NuStar’s 7.625% fixed-to-floating rate subordinated notes due 2043 declined amid increased attention in the secondary space.

The notes (NYSE: NSS) were down 4 cents to close at $25.57 on volume of 438,000 notes.

NuStar is a San Antonio-based petroleum pipeline company.

Qwest rises

Qwest’s $25-par notes continued to shoot upward on Tuesday. On Monday, the company issued a redemption notice for $1.34 billion in total of its 7.5% notes due 2051, two series of 7% notes due 2052 and 7.25% debentures due 2035.

Qwest’s existing 6.5% notes due 2056 (NYSE: CTBB) were up 51 cents to close at $23.50 on volume of about 408,000 notes.

The 6.75% notes due 2057 (NYSE: CTDD) were up 55 cents to close at $24.00 on volume of about 385,000 notes.

The 6.875% notes due 2054 (NYSE: CTV) were up 63 cents to close at $24.63 on volume of about 371,000 notes.

The 6.625% notes due 2055 (NYSE: CTZ) were up 65 cents to close at $23.90 on volume of about 299,000 notes.

The 6.125% notes due 2053 (NYSE: CTY) were up 57 cents to close at $22.50 on volume of about 276,000 notes.

On Monday, the 6.75% notes added 97 cents and the 6.875% notes picked up $1.35.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.07% at the market close after gaining 0.01% in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 4 cents to $37.68.

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