Midday Commentary: Vanguard heralds preferred units offering; CHS could come Tuesday

By Stephanie N. Rotondo

Phoenix, March 4 - A preferred stock trader said concerns about the Ukraine and Russia were waning Tuesday, resulting in an uptick in the markets.

"No one is scared of the big, bad wolf today," he said.

The Wells Fargo Hybrid and Preferred Securities index was up 20 basis points as of midday.

Vanguard Natural Resources LLC announced plans to sell series B cumulative redeemable perpetual preferred stock units.

Price talk is 7.625% to 7.75%, according to a trader. The company is expected to sell at least $75 million of the units.

There was also chatter that CHS Inc.'s planned sale of up to $350 million of series B cumulative redeemable perpetual preferreds could price Tuesday.

A market source had previously told Prospect News that the company was out talking to investors and that once that was wrapped, the deal would come. He speculated Tuesday could be the day, adding that at the very least it would likely price this week.

CHS originally announced the offering on Feb. 12, planning to sell just $250 million of the preferreds. On Feb. 27, the company revised its prospectus, upping the offering to $350 million.

Among recently priced deals, the Allstate Corp.'s $650 million of 6.625% series E noncumulative perpetual preferreds were seen ticking up at $24.92 bid, $24.97 offered. Southern California Edison Co.'s $275 million of 5.75% fixed-to-floating rate cumulative trust preference securities were meantime pegged at $25.20 bid, $25.23 offered.

Allstate priced Feb. 24. Southern California Edison came on Thursday.

© 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.