AmTrust preferreds free to trade; National General admitted to Nasdaq; Commerce to list

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 freed to trade around noon ET on Thursday, market sources reported.

One source quoted the issue at $24.55 bid, $24.65 offered. Another source said the last market he saw was wide at $24.55 bid, $24.70 offered.

Earlier in the session, a trader saw the issue trading at $24.60.

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.

The preferreds ended the day at par, which compared to opening levels of $24.85. The high of the day was $25.48.

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

Both the AmTrust and National General deals have struggled a bit since pricing. One source said that was generally because “everybody wants to push the price.”

But as for AmTrust specifically, he noted that the company recently was slapped with allegations of accounting irregularities.

“That kind of puts a cloud over them,” he said.

Overall, the market was once again strong.

The Wells Fargo Hybrid and Preferred Securities index was up 19 basis points by the bell.

Commerce, Farmer Mac to list

Commerce Bancshares Inc.’s $150 million of 6% series B noncumulative perpetual preferred stock and the Federal Agricultural Mortgage Corp.’s $75 million of 6% series C fixed-to-floating rate noncumulative preferred stock will begin trading on exchanges on Friday, according to a market source.

The Commerce issue will hit the Nasdaq, trading under the symbol “CBSHP.” The Farmer Mac shares will trade on the New York Stock Exchange under the symbol “AGMPC.”

A trader pegged the Commerce issue at $24.95 bid, $25.05 offered and the Farmer Mac paper at $24.95 bid, $25.07 offered.

Commerce priced June 12 via Morgan Stanley, BofA Merrill Lynch and JPMorgan. BofA Merrill Lynch led the Farmer Mac deal, which came June 17.

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