AmTrust Financial brings upsized new issue; Legg Mason notes free up; recent deals active

By Stephanie N. Rotondo

Seattle, March 8 – Yet another new issue hit the primary preferred stock calendar on Tuesday as AmTrust Financial Services Inc. brought $125 million of 7.75% series E noncumulative perpetual preferred stock.

Price talk was 7.75% to 7.875%, according to one market source. The deal came upsized from $75 million.

A trader saw the issue at $24.65 bid, $24.70 offered in the early gray market.

Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Keefe Bruyette & Woods Inc. is joint lead manager.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

From Monday’s business, Legg Mason Inc.’s $250 million of 6.375% $25-par junior subordinated notes due 2056 were initially pegged at $24.78 bid, $24.85 offered and seen closing at $24.82.

The closing price was up a penny from the previous day, a source said.

The issue also freed to trade during Tuesday’s session.

That deal was upsized from $150 million and came tighter than the 6.5% to 6.625% initial price talk.

As for deals priced last week, BB&T Corp.’s $425 million of 5.625% series H noncumulative perpetual preferreds – a deal priced Wednesday – dominated overall trading with more than 1 million shares being exchanged. The preferreds were quoted at $24.75 bid, $24.77 offered early in the day but eventually ended up 8 cents at $24.82.

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