Morning Commentary: Qwest to price $25-par notes; AmTrust not yet free; Wells Fargo gets symbol

By Stephanie N. Rotondo

Phoenix, Sept. 10 – Yet another new issue hit the preferred stock market calendar on Thursday.

“I understand we are going to have a busy new issue market,” a trader said.

Qwest Corp. said it was selling at least $250 million of $25-par senior notes due 2055, talked around 6.625%.

A trader saw the paper offered at $24.80 in the early gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the deal. Proceeds will be used to redeem outstanding debt.

Meanwhile, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par subordinated notes due 2055 – a deal priced Wednesday – had not yet freed to trade as of mid-morning, according to a trader.

He saw that issue trading around $24.60 early in the day.

Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Keefe Bruyette & Woods Inc. ran the books.

From Tuesday’s business, Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative perpetual preferreds were assigned a temporary trading symbol on Thursday, a trader reported.

The ticker is “WLFGP.”

The preferreds were quoted at $24.82 bid, $24.85 offered.

Wells Fargo Securities was the bookrunner on that deal.

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