AmTrust’s recent issue hits NYSE; Huntington could list soon; market gains on muted trading

By Stephanie N. Rotondo

Seattle, March 17 – Recently priced preferred stock deals continued to be the main focus in Thursday trading.

“These new issues should get cleaned up before they start bringing more,” a trader said.

AmTrust Financial Services Inc.’s $125 million of 7.75% series E noncumulative perpetual preferred stock, a deal that priced March 8, listed on the New York Stock Exchange on Thursday, as was expected.

The ticker symbol is “AFSIPE.”

The New York-based insurance provider also said Thursday that its $18.75 million greenshoe had been fully exercised, lifting issuance to $143.75 million.

The preferreds finished the day at $25.09.

A trader said the paper hit an early high of $25.10, though it was at par bid, $25.02 offered at mid-morning.

From Monday, Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferreds were pegged at $25.04 bid, $25.07 offered early in the day but moved up to close at $25.19.

That issue could begin trading on the Nasdaq Global Select Market in the next couple of days, a trader noted.

The ticker symbol is expected to be “HBANO.”

Meanwhile, Entergy New Orleans Inc.’s $110 million of 5.5% $25-par first mortgage bonds due 2066 “moved up nicely,” a trader said, seeing the notes trading around $25.40.

Another market source placed the issue at $25.39.

The utility-linked deal came Tuesday.

Rounding out the recent issues, KKR & Co. LP’s $300 million of 6.75% series A noncumulative perpetual preferred units were seen closing at $24.95. Earlier in the session, a trader said the preferreds were trading around par.

That deal came March 10.

Secondary firm, Deutsche weak

As for the broader secondary space, a trader said things were generally quiet. He speculated that March Madness was keeping people away.

“It seems like every year at this time people run off,” he said.

But while liquidity was limited, the preferred space was firm for the day, following the broader market’s trend.

The gains were attributed to the Federal Reserve’s decision on Wednesday to maintain interest rates as well as a revised forecast of fewer increases over the course of the year.

The Wells Fargo Hybrid and Preferred Securities index closed up 12 basis points.

Going against the grain, Deutsche Bank AG’s 7.6% trust preferred securities (NYSE: DTK) continued their slide on Thursday after the German bank’s chief executive officer said at a conference in London on Wednesday that profits would remain weak in the near term.

The paper fell 4 cents to $24.71.

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