Aspen Insurance dominates trading; NextEra's series G notes list on NYSE; EOS liquidation done

By Stephanie N. Rotondo

Portland, Ore., April 11 - Preferred stocks moved up Wednesday given the rebound in the broader markets.

"The markets are moving up," a trader said. In the preferred realm, there were "not really any big movers."

Recent new issues took the focus in midweek trading, according to anther trader.

"We definitely had some late-day action in new issues," he said.

In fact, Aspen Insurance Holdings Ltd.'s $150 million issue of 7.25% $25-par perpetual noncumulative preference shares was the most actively traded issue of the day. More than 1 million of the preferreds changed hands.

Meanwhile, NextEra Energy Capital Holdings Inc.'s $400 million of 5.7% series G junior subordinated debentures due 2072 officially listed on the New York Stock Exchange Wednesday. A trader said the securities have performed "very well."

Aspen trades actively

A trader said Aspen Insurance's 7.25% $25-par perpetual noncumulative preference shares were the "most active" securities of the day, with about 1.1 million shares turning over.

He placed the issue at $24.94, up nearly 1%.

The deal priced April 3. On Wednesday, the company said its over-allotment option was partially exercised, resulting in another 400,000 preferreds being issued. It increased the total issue size to $160 million.

Aspen Insurance is a Hamilton, Bermuda-based insurance and reinsurance company.

NextEra series G notes list

NextEra Energy Capital's 5.7% series G junior subordinated debentures due March 1, 2072 officially listed on the NYSE on Wednesday.

The deal priced March 21.

More than 582,000 notes (NYSE: NEEPG) traded during the session, and they ended at $25.18.

"It's done very well," a trader remarked.

The issue is the subsidiary of Juno Beach, Fla.-based power producer NextEra Energy Inc.

EOS liquidation done

A trader reported that EOS Preferred Corp. "finally redeemed" its 8.5% series D noncumulative exchangeable preferreds on Tuesday.

The preferreds have subsequently been delisted.

"Lehman creditors are getting 53% more than thought," the trader said. "So that's good for them."

The redemption price was $25.00 per preferred plus accrued dividends from Jan. 1 through the liquidation date.

The redemption is part of the company's plan to liquidate. Furthermore, it is expected that the company will soon liquidate the 8% $1,000-par series B cumulative nonconvertible preferreds.

The planned redemption of the Ds was first announced March 14.

EOS is based in New York.

First PacTrust radio silent

Irvine, Calif.-based First PacTrust Bancorp Inc. said Monday that it intended to sell $25-par senior notes due 2020.

However, market sources have seen and heard little about the deal.

One trader opined that it could be a small deal, thus the lack of interest.

D.A. Davidson & Co., one of the co-lead mangers, is "known for doing little deals like that," he said.

Another trader said he had heard of the deal and that "some people have been kicking the tires of that name." However, he had not heard any details on the yet-to-be priced issue.

Under their terms, the bank can redeem the notes beginning at some point in 2015.

First PacTrust will apply to list the notes on the Nasdaq Global Market.

Sandler O'Neil + Partners LP is the bookrunning manager. D.A. Davidson, Stern Agee & Leach Inc. and Wunderlich Securities Inc. are the co-lead mangers. FIG Partners LLC is the co-manager.

Proceeds will be used for possible acquisitions, support of organic growth, investments in or extensions of credit to subsidiaries, investments in securities and for general corporate purposes.

© 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.