Atlas Resource selling preferred units; Dominion prices $1,000-par notes; RBS firms on IPO

By Stephanie N. Rotondo

Phoenix, Sept. 24 – The primary preferred stock market saw a couple more deals added to the calendar early Wednesday.

Atlas Resource Partners LP announced plans to sell at least $50 million of class D cumulative redeemable perpetual preferred units, talked in an 8.625% area.

Morgan Stanley & Co. LLC and UBS Securities LLC are leading the non-rated deal.

Pricing is expected on Thursday.

Proceeds will fund a portion of the company’s planned purchase of assets in the Eagle Ford Shale region of south Texas.

Meanwhile, Dominion Resources Inc. announced and priced $685 million of 5.75% $1,000-par series A enhanced junior subordinated notes due Oct. 1, 2054.

Barclays, Morgan Stanley, UBS Securities and Wells Fargo Securities LLC are managing that deal.

Through Oct. 1, 2024, interest will be payable semiannually at a fixed rate. After that date, the interest rate will float at Libor plus 305.7 basis points and will be payable quarterly.

Proceeds will be used for general corporate purposes, including the redemption of the 8.375% 2009 series A enhanced junior subordinated notes due 2064 (NYSE: DRU).

After the market closed, a source pegged the Dominion issue at 100.25 bid.

Royal Bank of Scotland Group plc’s 5.9% noncumulative guaranteed trust preferred securities (NYSE: RBSPE) were better in active trading, rising 7 cents to $24.09.

The gains came as the company’s sale of 25% of its stake in Citizens Financial hit the market.

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