Morning Commentary: Dairy Farmers plans Rule 144A deal; Southern, Aspen improve; Entergy to list

By Stephanie N. Rotondo

Seattle, Sept. 15 – A new preferred stock issue hit the market early Thursday, coming as a bit of a surprise.

On Wednesday, a trader had reported that the pipeline was closed for the week, though more deals were expected to emerge next week.

Dairy Farmers of America Inc. said it planned to sell $100 million of series C cumulative perpetual preferreds, with price talk at 7.5%.

BofA Merrill Lynch and J.P. Morgan Securities LLC are leading the Rule 144A deal.

As for deals from earlier in the week, both the Southern Co.’s $800 million of 5.25% $25-par junior subordinated notes due 2076 and Aspen Insurance Holdings Ltd.’s $225 million of 5.625% noncumulative perpetual preference shares were seen at $24.90 bid at mid-morning.

Southern came Monday and Aspen followed on Tuesday. Both issues have freed to trade.

Meanwhile, Entergy Mississippi Inc.’s $260 million of 4.9% $25-par first mortgage bonds due 2066 – a deal from Sept. 8 – are slated to appear on the New York Stock Exchange on Friday, according to a market source.

The ticker symbol will be “EMP.”

A trader pegged the issue at $24.75 in early trading.

The established market was trading off as the day started, though a trader noted that “a lot of things are going ex-dividend, so things are bouncing around.”

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