Atlas Resource comes upsized, in line with talk; Dominion above par; Morgan Stanley sinks

By Stephanie N. Rotondo

Phoenix, Sept. 25 – The preferred stock market was again soft in Thursday trading.

The Wells Fargo Hybrid and Preferred Securities index finished off 14 basis points, after being down 7 bps at mid-morning.

A trader said that the market was on the quiet side, speculating that Rosh Hashana – the Jewish New Year – was taking people away from their desks; thus, little was getting done.

Atlas Resource Partners LP priced $80 million of 8.625% class D cumulative redeemable perpetual preferred units around midday.

The deal was upsized from $50 million and came in line with price talk.

However, market sources saw no markets for the new securities.

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

But Dominion Resources Inc.’s $685 million of 5.75% $1,000-par series A enhanced junior subordinated notes due Oct. 1, 2054 were seen trading at 100.5 bid.

That issue priced Wednesday.

The company officially called its 8.375% 2009 series A enhanced junior subordinated notes due 2064 (NYSE: DRU) late Wednesday. Proceeds from the new issue will be used to redeem the debt.

The notes were trading at $25.20 at Thursday’s close, unchanged from Wednesday’s close.

Morgan Stanley & Co. Inc.’s preferreds were actively traded on Thursday but down on the day.

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