Preferred market ends ‘basically flat’; National General upsized; Box Ships CFO exits

By Stephanie N. Rotondo

Phoenix, March 24 – Preferred stocks were “basically flat,” a market source reported Tuesday, and the Wells Fargo Hybrid and Preferred Securities index ended off just 2 basis points.

However, the source did note that “liquidity was better than it has been.”

In the primary, National General Holdings Corp. was out shopping a new offering of $25-par series B noncumulative preferreds via Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc.

The company priced $150 million of the preferreds – upsized from $50 million – at par to yield 7.5%.

Initial price talk was 7.5% to 7.625%.

At the close, a source pegged the issue at $24.65 bid, $24.70 offered. Another trader quoted the new issue at $24.65 bid, $24.87 offered in the early gray market.

The second trader commented that National General “originally wanted to launch in September” but decided to wait due to market conditions at that time.

Meanwhile, Box Ships Inc. announced after the close on Tuesday that Robert Perri, chief financial officer, was leaving his post, effective immediately.

While the company searches for a replacement, Michael Bodouroglou, chairman, president and chief executive officer, will fill the post.

As for the company’s 9% series C cumulative redeemable perpetual preferreds (NYSE: TEUPC), they finished the day up 75 cents, or 4.07%, at $19.20.

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