PartnerRe prices upsized offering of noncumulatives; Miller Energy plans follow-on sale

By Stephanie N. Rotondo

Phoenix, Feb. 11 - The preferred stock new issue market was lining up deals on Monday.

PartnerRe Ltd., a Pembroke, Bermuda-based reinsurance company, said it was planning to issue at least $150 million of series F noncumulative redeemable preferreds. Price talk was originally 6% to 6.125% but was then revised to 5.875%, according to a trader.

The deal came at 5.875%, with 10 million shares being sold, raising $250 million.

Meanwhile, Miller Energy Resources Inc. announced a best-efforts follow-on offering of its 10.75% series C cumulative redeemable perpetual preferreds. A trader said that a new $100-par deal from International Shipholding Corp. was also coming via a best-efforts marketing.

"It's a small little company," the trader said of the International Shipholding deal, noting that he had not seen any markets for the new issue. "It's like if you want it, go get some."

PartnerRe prices

PartnerRe brought $250 million of 5.875% series F noncumulative redeemable preferreds on Monday.

The deal was upsized from $150 million, and pricing came at revised talk.

A trader saw a less 17-cent bid for paper in the gray market at midday.

After the bell, another trader said that the issue had been trading between $24.80 and $24.90 "all day long."

The company intends to use proceeds to redeem its 6.75% series C cumulative redeemable preferreds, the company said in a regulatory filing.

That issue (NYSE: PREPC) dropped a dime to $25.49.

Miller eyes best-efforts sale

Miller Energy Resources is planning yet another best-efforts offering of its 10.75% series C cumulative redeemable preferreds.

On the news, the preferred shares (NYSE: MILLPC) were trading down 60 cents, or 2.55%, to $22.90.

The deal had not yet priced as of press time, nor did another best-efforts sale announced by International Shipholding.

Miller originally brought the series Cs on Sept. 25, with just over $17 million being sold at a discount. An at-the-market offering totaling just over $64 million came Oct. 12.

Miller Energy is a Knoxville, Tenn.-based oil and gas exploration and development company.

Zions admitted to NYSE

Zions Bancorporation's $171.8 million of 6.3% series G fixed-to-floating rate noncumulative preferreds listed on the New York Stock Exchange on Monday.

The issue priced at an auction on Jan. 31.

The ticker symbol is "ZBPG." The preferreds closed up 45 cents, or 1.75%, to $26.15.

Zions is a Salt Lake City-based bank holding company.

Recent deals do well

In other recent issues, General Growth Properties Inc.'s $250 million of 6.375% series A cumulative redeemable preferreds - a deal that priced Wednesday - was pegged at $24.85 bid, $24.92 offered, while Selective Insurance Group Inc.'s $175 million issue of 5.875% $25-par senior notes due 2043 were holding at $24.90 bid, $24.95 offered.

"That one is doing well," another trader said.

The Selective issue came on Tuesday.

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