Morning Commentary: Seaspan to price cumulative preferreds; Western Alliance offers $25-par notes

By Stephanie N. Rotondo

Seattle, June 9 – The preferred stock new issue pipeline continued to flow during Thursday’s session.

Seaspan Corp. announced an offering of at least $40 million series G cumulative redeemable preferreds, with price talk in an 8.25% area.

A trader saw the issue “around $24.70” in the early gray market.

RBC Capital Markets LLC, J.P. Morgan Securities LLC, Stifel Nicolaus & Co. Inc. and Incapital LLC are leading the deal.

Proceeds will be used for general corporate purposes.

Also announced Thursday was an offering of at least $100 million $25-par subordinated debentures due 2056 from Western Alliance Bancorporation.

Price talk on that deal was in a 6.25% area. Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

A trader said the paper was quoted at $24.67 bid, $24.75 offered in the early gray market.

As for other deals from the week, they continued to be in focus.

“There’s a lot of new issues to put away,” a trader said, opining that it would take some time for the deals to get put away. “But that’s a good problem to have.”

From Wednesday, Wells Fargo & Co.’s $1 billion of 5.5% series A class A noncumulative preferreds had freed to trade as of mid-morning, according to a trader.

The trader pegged the issue at $24.95 bid, par offered.

Maiden Holdings Ltd.’s $110 million of 6.625% $25-par notes due 2046 – a deal from Tuesday – were meantime seen at $24.92 bid, $24.97 offered.

And, Validus Holdings Ltd.’s $150 million of 5.875% series A noncumulative preference shares were see trading at $24.90, up 7 cents day over day.

That issue priced Monday and is trading under the temporary ticker symbol “VRHSP.”

As for new listings, NextEra Energy Capital Holdings Inc.’s 5.25% $25-par series K junior subordinated debentures due June 1, 2076 were admitted to the New York Stock Exchange on Thursday.

The ticker is “NEEPK.” The deal came May 31.

On Tuesday, the company said $70 million of its $75 million greenshoe had been exercised, bringing the total outstanding principal amount to $570 million.

The debentures were placed around par at mid-morning.

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