Morning Commentary: Arch Capital adds deal to calendar; Gladstone, AmTrust trade well; Aspen lists

By Stephanie N. Rotondo

Seattle, Sept. 22 – The preferred stock new issue pipeline started to flow again on Thursday, just one day after the Federal Reserve opted to hold interest rates steady.

Arch Capital Holdings Ltd. said it was selling series E noncumulative preferreds via BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets.

The Hamilton, Bermuda-based reinsurance company plans to use the proceeds from the offering to fund a portion of the cash consideration in regards to the United Guaranty Corp. acquisition.

As for the week’s already priced deals, AmTrust Financial Services Inc.’s $250 million of 6.95% series F noncumulative preferreds – a deal priced Tuesday – were on the rise, ticking up 15 cents to $25.10.

Gladstone Investment Corp.’s $50 million of 6.25% series D cumulative term preferred stock – a deal from Monday – was also faring better, adding 18 cents at mid-morning to trade at $25.15.

In new listings, Aspen Insurance Holdings Ltd.’s $225 million of 5.625% perpetual noncumulative preference shares hit the New York Stock Exchange, trading under the ticker symbol “AHLPD.”

Paper was at $25.20 at mid-morning, down from $25.31 at the open.

The deal came Sept. 13 via BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Barclays. The issue was upsized from $150 million. Price talk was 5.625% to 5.75%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.