Greece holds market’s attention; China’s CAR to buy Ucar preferreds; broader trading mixed

By Christine Van Dusen

Atlanta, July 2 – Trading of preferred stock was once again mostly quiet and mixed, with limited volumes on Thursday 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 for 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.

Countrywide Capital V’s 7.8% capital securities also ticked down 2 cents, seen at $25.73.

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. At the end of the day, the stock was trading at $28.37.

ING Groep NV’s 7 3/8% perpetual hybrid capital securities were seen at the end of the session at $24.97, down 2 cents on 264, 476 shares traded.

And Deutsche Bank Contingent Capital Trust III’s 7.6% trust preferred securities moved down 13 cents to $27.02 on just 86,377 shares traded.

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