Morning Commentary: Validus Holdings plans new $25-par issue; Maiden’s recent deal firms; NGL dips

By Stephanie N. Rotondo

Seattle, June 12 – The preferred stock primary market was wasting no time getting the pipeline flowing on Monday as Validus Holdings Ltd. announced a $150 million offering of $25-par series B noncumulative preference shares.

Price talk on the issue is 5.875%, a market source reported. Notably, the company already has an issue with a 5.875% coupon, the 5.875% series A noncumulative preference shares (NYSE: VRPrA).

That issue was off 25 cents in early dealings at $25.20.

As for the new issue, it was seen at $24.85 bid in the gray market.

BofA Merrill Lynch and Morgan Stanley & Co. LLC are running the books.

As for deals from the previous week, Maiden Holdings Ltd.’s $150 million of 6.7% series D noncumulative preference shares – a deal priced on Thursday – were pegged at $24.95, up 4 cents from Friday.

The preference shares are trading under a temporary symbol, “MDNHF.”

From Tuesday’s business, NGL Energy Partners LP’s $185 million of 9% class B fixed-to-floating rate cumulative redeemable preferreds units were off a share at $24.85 in early Monday trading.

That paper also has a temporary ticker, “NGGLP.”

And, Oxford Lane Capital Corp.’s $62.5 million of 6.75% series 2024 term preferreds – another deal priced on Tuesday – were quoted at $24.85 bid, $25.05 offered.

The temporary trading symbol is “OXXDP.”

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