Preferred market strong to end week; AmTrust new issue steady; ING sells SulAmerica stake

By Stephanie N. Rotondo

Phoenix, June 27 – The preferred stock market was firm again Friday, though a trader was lamenting a lack of activity.

The Wells Fargo Hybrid and Preferred Securities index ended up 17 basis points.

AmTrust Financial Services Inc.’s $100 million of 7.25% series B noncumulative preferreds were seen hanging around $24.65 bid, $24.70 offered early in the session.

That was down from where it closed on Thursday.

However, after the bell, a market source said the issue was the day’s most actively traded paying security, with 747,000 shares trading.

He said the issue ended flat at $24.85.

The deal priced Wednesday and freed to trade on Thursday.

Meanwhile, 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 began trading on their respective exchanges.

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

The Commerce shares finished at $25.02 versus a par opening level. Farmer Mac was meantime unchanged at $25.05.

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

ING divests SulAmerica stake

ING Groep NV’s 6.375% perpetual hybrid capital securities (NYSE: ISF) traded up Friday, as the company announced it had divested its remaining stake in SulAmerica SA.

The securities ended up a nickel at $25.45.

The Dutch financial institution sold its remaining 10% stake through a block trade on the BM&F Bovespa stock exchange. The sale is part of the company’s effort to get away from insurance and investment management and to focus on banking.

ING received €170 million from the sale, though the proceeds are not expected to impact the company’s bottom line too much. The bank intends to use the funds to pay down debt.

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