Morning Commentary: AmTrust expected to free in afternoon; National General lists on Nasdaq

By Stephanie N. Rotondo

Phoenix, June 26 – In the primary preferred stock space, AmTrust Financial Services Inc.’s newly priced $100 million issue of 7.25% series B noncumulative perpetual preferreds had yet to free up as of early trading, a trader said.

He saw the issue trading at $24.60.

“I imagine it will [free to trade] sometime this afternoon,” he said.

The deal came upsized from $75 million and at the tight end of talk on Wednesday.

Morgan Stanley & Co. LLC, UBS Securities LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the joint bookrunners. Keefe Bruyette & Woods Inc. is the lead manager.

Meanwhile, National General Holdings Corp.’s $55 million of 7.5% series A noncumulative preferreds were admitted for trading on the Nasdaq Global Select Market on Thursday.

The ticker symbol is “NGHCP.”

The deal priced June 18, coming downsized from an expected $100 million.

A trader said the paper was trading around $24.80. Nasdaq had the issue at $24.78, in line with opening levels.

Morgan Stanley and UBS Securities were the joint bookrunning managers. Keefe Bruyette & Woods, William Blair & Co. and JMP Securities LLC were the co-managers.

Overall, the market was flat to slightly better at mid-morning.

The Wells Fargo Hybrid and Preferred Securities index was up 2 basis points.

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