Preferreds drop, but up from lows; American Financial sells upsized notes; Goodrich firms

By Stephanie N. Rotondo

Seattle, Nov. 9 – The preferred stock market was under pressure in Monday trading following Friday’s sell-off spurred by a new jobs report that led many to think an interest rate increase was imminent.

However, the market did manage to pare its losses by the end of the day.

The Wells Fargo Hybrid and Preferred Securities index finished 18 basis points lower. The index was off 47 bps at mid-morning.

Despite the weakness in the market, a new deal was priced during the session.

American Financial Group Inc. brought $150 million of 6% $25-par subordinated debentures due 2055 on Monday.

Price talk was 6% to 6.125%, according to a market source. The deal came upsized from $100 million.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the bookrunners.

In the secondary space, Goodrich Petroleum Corp.’s preferred shares were gaining ground in response to word of an exchange offer.

The company announced the swap – 10% series E cumulative convertible preferred stock for all outstanding 5.375% series B cumulative convertible preferreds and up to 2.39 million shares each of the 10% series C cumulative preferreds and 9.75% series D cumulative preferreds – late Friday.

The Cs (NYSE: GDPPC) were up 65 cents, or 27.5%, at $3.03, while the Ds (NYSE: GDPPD) improved by 32 cents, or 13.33%, at $2.72.

The 5.375% convertible preferreds (OTCBB: GDPAN) increased 95 cents, or 35.19%, to $3.65.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.