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.

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

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

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

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.

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.

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