Maiden Holdings prices; Fifth Third plans deal; liquidity better; Wachovia, RBS stand out

By Christine Van Dusen

Atlanta, Nov. 18 - Maiden Holdings North America Ltd. printed an issue of $25-par fixed-rate notes on a Monday that saw slightly better liquidity for the preferred stock market.

Also making headlines in the space was Fifth Third Bancorp, which is seeking to price subordinated notes due 2024 to repurchase trust preferred securities.

On an index basis, the overall preferreds market was up about 11 basis points, or 3 cents, a market source said.

"Liquidity was OK today," the source said.

During the morning, the most active issue was Wachovia Preferred Funding Corp.'s 7¼% non-cumulative exchange preferred securities A (NYSE: WNA-P), quoted at $25.41, unchanged on volume totaling 471,078.

Countrywide Capital V's 7% capital securities (NYSE: CFC-PB) were also active during the early part of the session, up 3 cents at $25.04 on volume totaling 48,696.

And Morgan Stanley Capital Trust III's 6¼% capital securities (NYSE: MWR) traded at $23.89, down 10 cents on 45,193 shares.

"It's mixed," a trader said. "Things ran up so strongly, and now the Dow is over 16,000, so people are getting a little nervous. But I'm not really seeing people clamoring to get out of things."

RBS active in afternoon

On Monday afternoon, the most active paying issue was Royal Bank of Scotland's 6.6% non-cumulative dollar preference shares, series S, (NYSE: RBS-S), a market source said.

The issue headed into the end of the day up 3 cents to $22.43 on 1.75 million shares.

RBS's 6.4% non-cumulative dollar preference shares, series M, (NYSE: RBS-M) were also active, finishing up a penny at $21.81 on about 1 million shares.

And the company's 6.35% non-cumulative dollar preference shares, series N, (NYSE: RBS-N) closed off a penny at $21.63 on about 796,000 shares.

Maiden sells notes

In its new deal, Maiden Holdings North America sold $152.5 million fixed-rate notes due Dec. 1, 2043 at par to yield 7¾%, according to a company filing.

The $25-par notes were talked at a yield of 7 7/8% to 8%.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. were the joint bookrunners for the Securities and Exchange Commission-registered deal. Keefe, Bruyette & Woods, Inc. was a lead manager.

Proceeds will be used to repurchase the company's outstanding trust preferred securities due January 2014.

The notes are fully and unconditionally guaranteed by Maiden Holdings Ltd., a Hamilton, Bermuda-based reinsurance holding company.

Fifth Third taps bookrunners

Fifth Third is planning to price an issue of subordinated notes due 2024, according to a 424B3 filed with the SEC.

The banks on the deal are Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., Goldman Sachs and Morgan Stanley.

Proceeds will be used for general corporate purposes, which may include the repurchase of trust preferred securities.

The financial services company is based in Cincinnati.

Aleesia Forni contributed to this report

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