Morning Commentary: Freddie Mac preferreds slip; NEAH GES to issue preferreds; Aegon dips

By Christine Van Dusen

Atlanta, Oct. 1 – Fannie Mae’s preferred stock suffered on Wednesday morning after a federal judge dismissed lawsuits that alleged it was illegal for the mortgage corporation, along with Freddie Mac, to funnel profits to the government in the form of dividends.

In response, Fannie Mae’s series S preferred shares declined by more than 45%, a trader said.

In other news on Wednesday, NEAH GES USA Inc. (GES) announced plans for an issue of $100 million of its preferred stock alongside new senior notes maturing in 2019 and 2024.

The proceeds from the senior Rule 144A and Regulation S notes will be used to fund the proposed acquisition of South Africa-based Quemic’s operations in Ghana and Mozambique, to acquire United Kingdom-based Graspon Frankton Maritime and to purchase Bell twin engine 412 utility helicopters.

NEAH USA is part of Dubai-based NEAH Global Energy Solutions (GES), a power generation, infrastructure, maritime, aviation and logistics provider based in Dubai.

In trading among preferreds on Wednesday morning, Aegon NV’s 6.375% perpetual capital securities dipped 8 cents to $25.36 on 52,557 shares traded.

Morgan Stanley Capital Trust VII’s 6.6% capital securities rose 2 cents to $25.23 on 31,577 shares traded.

And Barclays Bank plc’s 8.125% non-cumulative callable dollar preference shares, series 5 ADR, moved up 4 cents to trade at $26.01 on 27,880 shares traded.

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