American Homes prices; Qwest frees to trade; Wells Fargo comes in; Morgan Stanley gains

By Stephanie N. Rotondo

Seattle, April 19 – The preferred stock new issue market was showing no signs of letting up on Wednesday as American Homes 4 Rent emerged to tap the primary.

The Agoura Hills, Calif.-based real estate investment trust sold $150 million of 5.875% series F cumulative redeemable preferred stock. The deal came upsized from $100 million and at the tight end of the 5.875% to 6% price talk.

A market source said the last gray market quote for the paper was $24.80 bid, $24.85 offered.

BofA Merrill Lynch, Raymond James & Associates Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

From Tuesday’s business, Qwest Corp.’s $575 million of 6.75% $25-par notes due 2057 freed to trade by the end of the day, according to one source. The source placed the issue at $24.78 at the close.

Meanwhile, Wells Fargo & Co.’s $600 million issue of 5.625% series Y class A noncumulative preferreds meantime closed at $25.05, which was off a nickel for the day.

In earlier dealings, the preferreds were pegged at $25.06 bid, $25.10 offered.

And Morgan Stanley & Co. Inc.’s 5.85% series K fixed-to-floating rate noncumulative preferreds (NYSE: MSPrK) inched upward on Wednesday after the New York-based bank announced first-quarter results that beat expectations.

The preferreds rose 2 cents to $26.30.

The company saw total profit jump 74% year over year, as fixed income trading revenue nearly doubled.

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