Ares selling preferred units; Reinsurance Group prices subordinated debentures; DTE lists

By Stephanie N. Rotondo

Seattle, June 1 – The first day of the month saw two new issues entering the preferred stock market.

Ares Management LP said it planned to price at least $150 million of series A preferred units.

Price talk is 7% to 7.125%, according to a market source.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC are running the deal.

Pricing details were not available at press time, though one market source said $275 million of the preferred units were sold.

Proceeds will be used to fund Ares Capital Corp.’s planned merger with American Capital Ltd.

Reinsurance Group of America Inc. also announced a deal, an offering of $25-par fixed-to-floating rate subordinated debentures due 2056.

The deal came at 5.75%, with $400 million of the debentures being sold. The coupon starts to float on June 15, 2026 at Libor plus 404 basis points.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo and HSBC are the joint bookrunners.

In new listings, DTE Energy Co.’s $300 million of 5.375% $25-par 2016 series B junior subordinated debentures due 2076 began trading on the New York Stock Exchange on Wednesday.

The ticker is “DTJ.” The deal priced May 23 via BofA Merrill Lynch, UBS and Wells Fargo.

© 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.