Aspen Insurance’s new deal keeps pipeline flowing; recent deals drop; Fannie, Freddie dive

By Stephanie N. Rotondo

Seattle, Sept. 13 – Yet another preferred stock issue hit the tape on Tuesday, as Aspen Insurance Holdings Ltd. brought $225 million of 5.625% noncumulative perpetual preference shares.

The deal came upsized from $150 million and tight to the 5.625% to 5.75% price talk.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Barclays ran the books.

The Hamilton, Bermuda-based reinsurance company said it plans to use the proceeds to redeem its 7.401% fixed-to-adjustable rate noncumulative preference shares (NYSE: AHLPA) and its 7.25% noncumulative perpetual preference shares (NYSE: AHLPB).

The 7.401% securities traded off 62 cents, or 2.37%, to $25.40. The 7.25% issue dipped 12 cents to $25.84.

The 7.401% preference shares become redeemable Jan. 1. The 7.25% securities are callable on July 1.

Meanwhile, recently priced preferred issues were drifting downward on Tuesday as the broader markets also came in.

Also, Fannie Mae and Freddie Mac preferreds continued to lose ground on Tuesday. The securities have been weaker in recent days but have been punished by Friday’s news that a U.S. District Court judge dismissed a shareholder lawsuit brought in regards to the government’s net worth sweep.

Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) dropped 13 cents, or 4.11%, to close at $3.03, while the 6.55% noncumulative preferreds (OTCBB: FMCKI) declined 33 cents, or 12.69%, to $2.27.

© 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.