Morning Commentary: Vanguard Natural Resources on tap; AmTrust preferreds not yet free

By Stephanie N. Rotondo

Phoenix, Sept. 10 – Preferred stocks continued to be weak in midweek trading, but the new issue pipeline kept building up.

Vanguard Natural Resources LLC announced an offering of series C cumulative redeemable perpetual preferred units early in the day. The company is looking to sell at least $75 million of the securities, according to a market source, with price talk in a 7.75% to 7.875% area.

A trader pegged the issue at $24.70 in the early gray market.

Morgan Stanley & Co. LLC and UBS Securities LLC are running the books.

Meanwhile, AmTrust Financial Services Inc.’s $80 million issue of 7.625% series C noncumulative preferreds had yet to free up, a trader reported.

The deal priced late Tuesday.

The trader saw the paper trading around $24.65 at mid-morning.

From Monday’s business, CHS Inc.’s $475 million issue of 6.75% series 3 class B reset rate cumulative redeemable preferreds received a temporary trading symbol, according to a source.

The symbol is “CHSPP.”

The source quoted the preferreds in a $24.85 to $24.90 context.

Among other recent deals, Bank of America Corp.’s 6.625% series W noncumulative preferreds listed on the New York Stock Exchange on Wednesday, as was expected.

The issue priced Sept. 2. The ticker symbol is “BACPW.”

The preferreds were trading at $24.79 at mid-morning, down from opening levels of $24.85.

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