W.R. Berkley downsizes sale of $25-par subordinated notes; eBay notes free to trade

By Stephanie N. Rotondo

Seattle, Feb. 23 – The preferred stock space saw another new issue hitting the tape on Tuesday as W.R. Berkley Corp. announced a sale of $25-par subordinated debentures due 2056.

The new $100 million deal came at par to yield 5.9%. Originally, the issue was being talked in a 5.9% area with at least $150 million of the notes expected to be sold.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

The Greenwich, Conn-based insurance company plans to use the proceeds for general corporate purposes.

Meanwhile, eBay Inc.’s $750 million of 6% $25-par notes due 2056 – a deal priced Monday – had freed to trade by mid-morning, according to a trader.

The paper was pegged at $24.82 bid, $24.90 offered.

That deal came upsized from $250 million. Initial price talk was in a 6.125% to 6.25% range but was later revised to 6%.

BofA Merrill Lynch, JPMorgan, Morgan Stanley and Wells Fargo also led that deal.

Away from new issues, the preferred stock market was following the broader markets downward in Tuesday trading, though the losses were stemmed a bit by day’s end.

The Wells Fargo Hybrid and Preferred Securities index finished down 5 basis points. The index was off 33 bps at mid-morning.

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