National General selling noncumulative preferreds; Miller Energy sells add-on at discount

By Stephanie N. Rotondo

Phoenix, Aug. 21 – Preferred stocks were edging higher in Thursday trading after slipping slightly in the previous session.

The Wells Fargo Hybrid and Preferred Securities index closed up 3 basis points.

But liquidity was constrained yet again as investors waited to see what would come out of the Federal Reserve’s annual meeting in Jackson Hole.

The meeting was scheduled to begin late Thursday.

National General Holdings Corp. announced plans to sell $100 million of series B noncumulative preferreds via Morgan Stanley & Co. LLC and UBS Securities LLC.

However, a trader said he had not heard many details on the deal.

Meanwhile, Miller Energy Resources Inc. priced $18.75 million of 10.5% series D fixed-to-floating rate cumulative redeemable preferreds in a “best efforts” follow-on offering.

The issuance is in addition to the $25 million of the preferreds the company sold on Sept. 25, 2013.

The company sold the preferreds at a discount at $24.50 per share. That was a slight discount to the company’s closing share price of $24.57 on Wednesday.

In early Thursday trading, the preferreds (NYSE: MILLPD) were down 25 cents, or 1.02%, at $24.32. The preferreds ended the day at $24.35, off 22 cents.

MLV & Co. LLC and Maxim Group LLC ran the books on the deal, which begins to float at Libor plus 907.3 bps on Dec. 1, 2018.

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