Qwest prices upsized deal; Ladenburg, WhiteHorse announce offerings; financials active

By Andrea Heisinger

New York, May 14 - A sale of $25-par senior notes from Qwest Corp. led the preferred stock market on Tuesday, with two other sellers also eyeing the primary.

The market as a whole was off about 20 basis points, or about 5 cents overall, a source said.

"I think it just got ahead of itself," a source added.

Qwest sold $750 million of 40-year $25-par notes. The size was tripled from an initial $250 million.

Price talk at midday was whispered in the 6.25% to 6.375% range and later revised to the 6.125% area.

A trader saw Qwest at "less 35 cents" in the gray market at midday.

After the close they were quoted at $24.97 to $25.00, a source said.

"They're hanging in there," the source added.

Proceeds are being used to provide a portion of funds to retire at maturity $750 million of floating-rate notes.

Elsewhere, Ladenburg Thalmann Financial Services Inc. is preparing a sale of $50 million, or 2 million shares, of series A $25-par perpetual cumulative redeemable preferreds, according to a press release and filing with the Securities and Exchange Commission on Tuesday.

Proceeds will be used to prepay the December 2014 installment under notes payable to various lenders totaling $16.1 million and to repay outstanding borrowings under a $40 million revolving credit facility, along with other general corporate purposes.

The independent brokerage and advisory firm is based in Miami.

A third announcement came from WhiteHorse Finance, Inc.

The Miami-based externally managed closed-end management investment company is planning a sale of $25-par senior notes, according to a form N-2 filing with the SEC.

Proceeds will be used to reduce outstanding obligations under an unsecured term loan and for other general corporate purposes.

"I have seen absolutely nothing on that one," a trader said.

New preferreds trading

On the secondary side of the market, traders saw the $200 million of 5.5% $25-par perpetual preferreds from AXIS Capital Holdings Ltd. free to trade.

A source pegged the issue at $25.02 offered and later at $25.10. Late on Monday the preferreds were seen at $25.05.

Fifth Third Bancorp's $600 million of 5.1% $1,000-par perpetual shares were also seen trading.

A trader quoted them at "par and a quarter." The preferreds were seen at 100.375 late Monday.

Financials active

The top five most active issues of the day were all financial names, a trader said just after the market close.

A recently called series Q preferred from Merrill Lynch saw 2.57 million shares trade, ending up 1 cent on the day at $24.99, the trader said.

The new 4.7% preferred from General Electric Capital Corp. had 1.53 million shares change hands, ending off a penny at $24.97.

A series A preferred from Barclays had 1.16 million shares trade, ending off 21 cents at $25.58, the trader said.

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