Midday Commentary: Selective Insurance Group planning new issue; others expected to follow

By Stephanie N. Rotondo

Phoenix, Feb. 5 - Selective Insurance Group Inc. announced a new senior note offering on Tuesday, and more new issues were expected to come soon.

A trader said there was a regional bank that was talking about bringing a deal this week. However, it was pushed to next week.

Still, he added that there was talk of another new deal coming on Wednesday, though he didn't have any further details.

As for Selective's new $25-par notes due 2043, a trader saw the issue offered at less 30 cents in the midday gray market.

"I haven't heard any discussion on whether they're going to tweak pricing or not," he said. "But it seems fairly valued, it should price right around where they've said."

Price talk is around 5.875%.

Meanwhile, Zions Bancorporation's new $171.8 million of 6.3% series G fixed-to-floating rate noncumulative perpetual preferreds - a deal that priced at auction on Jan. 31 - was pegged at $25.30 bid.

In the secondary, Interstate Power & Light Co.'s 8.375% series B cumulative preferred stock (NYSE: IPLPB) was drifting downward after the company said late Monday that it intended to redeem the preferreds on March 22.

At midafternoon, the issue was trading at $25.53, down 20 cents. The redemption price is $25.0407, including accumulated dividends after March 15.

© 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.