Qwest prices $25-par notes; AmTrust to free up Friday; Wells Fargo assigned symbol

By Stephanie N. Rotondo

Phoenix, Sept. 10 – Yet another new issue hit the preferred stock market calendar on Thursday.

“I understand we are going to have a busy new issue market,” a trader said.

Qwest Corp. priced $400 million of 6.625% senior notes due 2055 late in the day after announcing an offering of at least $250 million of the securities early in the session. The coupon came in line with talk that had been set in the 6.625% area.

Ahead of the market’s close, the notes were pegged at $24.50 bid, $24.65 offered in the gray market.

A trader had seen the paper offered at $24.80 in the early gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the deal. Proceeds will be used to redeem outstanding debt.

With the new supply, Qwest’s 6.125% $25-par notes due 2053 (NYSE: CTY) were busy and weaker in trading.

The notes closed off 48 cents, or 1.93%, at $24.41.

Meanwhile, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par subordinated notes due 2055 – a deal priced Wednesday – did not free to trade on Thursday but were expected to do so on Friday, according to a trader.

The trader saw that issue trading around $24.60 early in the day.

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

From Tuesday’s business, Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative perpetual preferreds were assigned a temporary trading symbol on Thursday, a trader reported.

The ticker is “WLFGP.”

The preferreds were quoted at $24.82 bid, $24.85 offered early in the day and then at $24.83 bid, $24.85 offered toward the end of the day. The preferreds finished at $24.89, which was up 9 cents from the previous close but up just a penny from the open.

Wells Fargo Securities was the bookrunner on that deal.

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