Midday Commentary: Maiden's new issue frees from syndicate; Capital One preferreds list

By Stephanie N. Rotondo

Phoenix, Aug. 23 - The preferred stock market was "taking a breather," a trader said Thursday.

While that meant generally subdued volumes, there was also an upside, the trader remarked.

"It gives retail some time to absorb all this inventory we've got out there," he said.

In primary dealings, Maiden Holdings Ltd.'s $150 million offering of 8.25% series A noncumulative perpetual preference shares freed to trade.

The issue priced Wednesday after the close.

A trader said the paper was "doing well" on the break, seeing it trade at $25.10.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers.

Proceeds will be used for general corporate purposes, including possible common share buybacks or trust preferred redemptions.

Meanwhile, Capital One Financial Corp.'s $875 million issue of 6% series B fixed-rate noncumulative perpetual preferreds listed on the New York Stock Exchange Thursday.

The ticker symbol is "COFPP." The deal priced Aug. 14.

The preferreds were trading down 11 cents from the previous close at middy at $24.84. Since launching, the deal has struggled to hit par.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley, UBS Securities LLC and Wells Fargo Securities were the joint bookrunners.

Co-managers were Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. and RBS Securities Inc.

Proceeds will be used for general corporate purposes, including a possible redemption of trust preferreds.

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