Endurance prices $200 million 6.35% preferreds; United States Cellular frees to trade

By Stephanie N. Rotondo

Seattle, Nov. 17 – The primary preferred stock market churned out more deals on Tuesday, as Endurance Specialty Holdings Ltd. announced a new issue.

The Pembroke, Bermuda-based specialty insurance company said it would price at least $100 million of series C noncumulative perpetual preferred stock. That deal later came upsized at $200 million and tighter than initial price talk.

Meanwhile, United States Cellular Corp.’s $300 million of 7.25% $25-par senior unsecured notes due 2064 were seen at $24.84 bid, $24.88 offered early in the day. Around noon ET, the paper freed to trade and moved up to $24.90 bid, $24.92 offered.

A second market source said the notes closed at $24.81, with a volume weighted average price of $24.86.

The deal priced Monday, coming upsized from $150 million and at the tight end of 7.25% to 7.375% talk.

U.S. Bancorp’s $750 million of 5.125% $1,000-par series I fixed-to-floating rate noncumulative preferreds – another deal from Monday’s business – were pegged at 100.375 bid, 100.5 offered but moved up to 100.75 by the bell.

That issue came via U.S. Bancorp Investments Inc. Barclays and Morgan Stanley.

Endurance upsized

Endurance Specialty Holdings brought $200 million of 6.35% series C noncumulative perpetual preferred stock to market on Tuesday.

The deal was double that of the original size and came tighter than the 6.5% price talk.

A trader saw a $24.65 bid for paper in the early gray market, though he later placed the issue in a $24.80 to $24.83 context.

A second source saw the issue at $24.84.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

The company intends to use proceeds from the deal to redeem all $200 million of its outstanding 7.75% series A noncumulative preferreds (NYSE: ENHPA).

That issue was off 26 cents, or 1.01%, at $25.52.

Dividends will be payable on the 15th day of March, June, September and December, beginning March 15, 2016.

The preferreds become redeemable Dec. 15, 2020 at par plus accrued dividends. The preferreds can be redeemed prior to that date upon a capital disqualification or tax event at $26.00 per share plus accrued dividends.

© 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.