Morning Commentary: Greece continues to hold market’s attention; China’s Car to buy Ucar preferreds

By Christine Van Dusen

Atlanta, July 2 – Trading of preferred stocks was once again mostly quiet, with limited volumes on Thursday morning as investors continued to watch the economic crisis in Greece.

Meanwhile, China’s Car Inc. announced plans to purchase preferred shares of Ucar Group – a mobile application that offers chauffeured car service and is owned by Car’s founder – for $125 million.

“Based on this deal, Ucar was valued at more than $1 billion, which is stretched, to say the least, for a chauffeured car service that still generates losses,” Schildershoven Finance BV said in a report. “The purchased preferred shares can be converted to ordinary shares equivalent to a 10% stake in the company, with the assumption of a 1-to-1 conversion ratio.”

Car’s 2020 bonds currently trade at 370 basis points, above the average spread of 250 bps from BB+ Asian issuers, the report said.

In trading of preferreds on Thursday morning, RBS Capital Funding Trust V’s 5.9% noncumulative guaranteed trust preferred securities dipped 2 cents on Thursday morning to trade at $24.21 on 295,695 shares traded.

Countrywide Capital V’s 7.8% capital securities also ticked down 2 cents, seen at $25.73 on trading volume totaling 143,265.

And Wells Fargo & Co.’s 8% depository shares non-cumulative perpetual CI A preferred stock series J rose 8 cents to trade at $28.28 on 116,500 shares traded.

© 2015 Prospect News.
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