New issues bid up; W.R. Berkley, Aspen free to trade; BB&T inches toward par; MPG softens

By Stephanie N. Rotondo

Phoenix, April 26 - The primary preferred stock market firmed up nicely in Friday trading.

"Everybody is bidding things up," a trader said.

W.R. Berkley Corp.'s new $350 million of 5.625% $25-par subordinated debentures due 2053 freed to trade at 10 a.m. ET, according to the trader.

"It shot up once it freed," he said, to $25.08 bid, $25.17 offered from previous trades around $24.90.

Aspen Insurance Holdings Ltd.'s $275 million of 5.95% fixed-to-floating noncumulative preference shares also freed to trade, he said.

"It's ripping," he said. Early in the session, there was a $25.35 bid for paper, but the last trade he saw around midday was $25.60.

"That was a hair mispriced or else they should have grown it," he said. "It was a small deal, not a lot of people got shares."

Both deals priced Thursday.

Meanwhile, BB&T Corp.'s $450 million of 5.2% series G noncumulative perpetual preferreds - a deal that priced Wednesday - was "catching more of a bid." The securities had been hanging around $24.75 on Thursday, which a trader said was a manager. But come Friday, the preferreds were getting "more organic bids," with the trader seeing the issue at $24.80 bid.

"That makes sense compared to where the other BB&Ts are trading," he said, adding that he expected the deal would inch closer to par next week.

In the secondary, MPG Office Trust Inc.'s 7.625% series A cumulative redeemable preferreds (NYSE: MPGPA) remained active after news out Thursday regarding a buyout by Brookfield Office Properties Inc. But while the paper had risen dramatically on the news Thursday, Friday saw the paper giving back in Friday trading.

The preferreds were down 26 cents at $27.80. The issue had opened at $28.17.

Also, Zions Bancorporation's 9.5% series C noncumulative perpetual preferreds (NYSE: ZBPC) were again active, though lower, ahead of an auction of new securities slated for Monday.

The shares dipped 2 cents to $25.83.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.