AmTrust prices $25-par notes due 2055; Wells Fargo’s new preferreds free up; market dips

By Stephanie N. Rotondo

Phoenix, Sept. 9 – The second trading day of the short week saw a second new deal hit the preferred stock marketplace.

AmTrust Financial Services Inc. brought $125 million of 7.5% $25-par subordinated notes due 2055 on Wednesday. The New York-based insurance company announced plans to sell at least $100 million of the notes earlier in the day. The notes were talked in a 7.5% to 7.625% range, according to a market source.

A trader quoted the notes at $24.55 bid, $24.60 offered around midday.

Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Keefe Bruyette & Woods Inc. ran the books.

At mid-morning, a trader said he had yet to see any gray markets for the new issue, though he noted that the 7.25% $25-par subordinated notes due 2055 (NYSE: AFSS) were “coming in a little.”

That paper was off 30 cents, or 1.2%, at mid-morning, trading at $24.71. The issue closed at $24.67, down 34 cents, or 1.36%.

“It should do well,” the trader said of the new issue.

Meanwhile, Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative perpetual preferreds freed to trade at 11:30 a.m. ET, according to a trader.

The issue came Tuesday, upsized from $250 million and at the tight end of talk.

At the close, a market source said the preferreds ended at $24.80, with a volume weighted average price of $24.85.

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