Validus Holdings prices $25-par issue tight to talk; Maiden’s recent deal firms; NGL lower

By Stephanie N. Rotondo

Seattle, June 12 – The preferred stock primary market was wasting no time getting the pipeline flowing on Monday as Validus Holdings Ltd. brought a $250 million sale of 5.8% $25-par series B noncumulative preference shares.

The deal was increased from an expected $150 million.

Price talk on the issue was 5.875%, a market source reported. Notably, the company already has an issue with a 5.875% coupon, the 5.875% series A noncumulative preference shares (NYSE: VRPrA).

That issue slipped 9 cents to $25.36.

As for the new issue, it was seen at $24.94 bid, $24.99 offered just prior to pricing.

Earlier in the day, a trader saw the new preference shares at $24.85 bid in the gray market.

As to the ending market, a source noted that the quote was “better than most $25-par preferreds.”

When asked why the deal fared so well, the source remarked that it was “because the underwriter finally did their job in balancing supply and demand and not being driven by what we call here ‘maximum yield to underwriter.’”

BofA Merrill Lynch and Morgan Stanley & Co. LLC ran the books.

As for deals from the previous week, Maiden Holdings Ltd.’s $150 million of 6.7% series D noncumulative preference shares – a deal priced Thursday – were pegged at $24.98, a gain of 7 cents on the day.

The preference shares are trading under a temporary symbol, “MDNHF.”

From Tuesday’s business, NGL Energy Partners LP’s $185 million of 9% class B fixed-to-floating rate cumulative redeemable preferred units finished the day at $24.80. That compared to $24.87 on Friday and $24.95 at the open.

The issue topped the day’s activity, with over 494,000 units trading.

That paper also has a temporary ticker, “NGGLP.”

And, Oxford Lane Capital Corp.’s $62.5 million of 6.75% series 2024 term preferreds – another deal priced on Tuesday – closed at par, versus $25.12 at the open.

The preferreds were quoted at $24.85 bid, $25.05 offered at mid-morning.

The temporary trading symbol is “OXXDP.”

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