Vanguard Natural Resources prices; Royal Bank of Scotland climbs; overall trading weak

By Stephanie N. Rotondo and Christine Van Dusen

Atlanta, Sept. 10 – Preferred stocks remained weak in trading on a Wednesday that saw the list of new issues grow.

Vanguard Natural Resources LLC said it priced a $100 million offering of series C cumulative redeemable perpetual preferred units at par of $25 with a 7.75% dividend.

Earlier in the day, the company announced plans 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.

At the time, a trader had pegged the issue at $24.70 in the early gray market.

Morgan Stanley & Co. LLC and UBS Securities LLC are running the books. Joint lead managers include Barclays, Credit Suisse Securities (USA) LLC and MLV & Co. LLC.

Proceeds will be used to repay a portion of Vanguard Natural Resources’ debt outstanding under its senior secured revolving credit facility.

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.

On Wednesday afternoon, RBS Capital Funding Trust V’s 5.9% noncumulative guaranteed trust preferred securities were flat at $23.65 on 514,463 shares traded.

RBS Capital Funding Trust VII’s 6.08% noncumulative guaranteed trust preferred securities dipped 4 cents to $23.67 on 407,562 shares traded.

And Royal Bank of Scotland’s 7.25% noncumulative dollar preference shares, series T ADR, climbed 12 cents to $25.44 on 242,208 shares traded.

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