Great Elm prices $43 million; Legacy’s climb continues; AmTrust’s series A-F preferreds drop

By Abigail W. Adams

Portland, Me., Jan. 12 – Great Elm Capital Corp. priced $43 million in $25-par 6.75% notes due 2025 after the market close on Thursday. The notes have not yet been freed to trade for OTC business.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and Oppenheimer & Co. Inc. are bookrunners for the registered sale, which carries a greenshoe of $6.5 million.

Both the iShares U.S. Preferred Stock ETF and Wells Fargo Hybrid and Preferred Securities Aggregate index were down on Friday.

The Wells Fargo index slid 16 basis points and the iShares ETF was down 0.18% at the market close Friday.

Despite the decline in the broader market, Legacy Reserves LP continued to see gains.

After moving in opposite directions in early trades, Legacy Reserves LP’s 8% series A fixed-to-floating rate cumulative redeemable perpetual preferred units and 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units ended Friday’s session on a positive note.

Legacy’s 8% series A units climbed 10 cents to $6.03 early in Friday’s session, an increase of 1.68%. The units lost some steam and ended the day up 8 cents, or 1.25%, at $6.01.

Legacy’s 8% series B units slipped 21 cents to $5.637, a decrease of 3.64%, early in the session. The units rebounded and closed the market Friday up 10 cents, or 1.71%, at $5.95.

Both units made large gains on Thursday amid speculation the fortunes of the Midland, Texas-based limited partnership focused on the acquisition and development of oil and natural gas properties are primed to improve.

AmTrust Financial Services Inc.’s series A through F non-cumulative perpetual preferred stock all posted losses at market close Friday. They were among the largest losers of the day.

AmTrust’s 6.75% series A preferred stock was down $1.21 to close Friday’s session at 5.89%, a decrease of 5.89%.

AmTrust’s 7.25% series B preferred stock was down 80 cents to close Friday at $20.95, a decrease of 3.68%.

AmTrust’s series C preferred stock was down 94 cents to close at $21.26, a decrease of 4.23%.

AmTrust’s 7.5% series D preferred stock was down $1.03 to close at $21.07, a decrease of 4.66%.

AmTrust’s 7.75% series E preferred stock was down $1 to close at $21.65, a decrease of 4.42%.

AmTrust’s 6.95% series F preferred stock was down $1.05 to close at $19.67, a decrease of 5.07%.

There is currently a buy-out proposal on the table for the struggling New York, New York-based multinational property and casualty insurance company.

Stone Point Capital LLC, AmTrust chief executive officer Barry Zyskind and long-term shareholders George and Leah Karfunkel announced a proposal to jointly purchase all outstanding common shares of AmTrust not already owned by Zyskind or the Karfunkels at $12.25 a share after the market close on Tuesday.

The Karfunkels and Zyskind currently own 43% of AmTrust shares, according to a news release. A special committee has been formed to review the proposal.

The acquisition will require the recommendation of the special committee and the approval of a majority of shareholders, not including the Karfunkels, Zyskind or AmTrust senior management.

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