W.R. Berkley prices upsized $175 million baby bonds; recent deals, broader market down

By Abigail W. Adams

Portland, Me., March 19 – While the secondary market in the preferreds space was down on Monday alongside broader equities, the primary market was active preparing a new baby bond offering.

W.R. Berkley Corp. priced an upsized $175 million of 5.7% subordinated debentures due 2058 (Baa3/BBB-/BBB-) at par of $25 after the market close Monday.

Price talk had been for a coupon in the 5.75% area with the deal size initially $100 million, according to a market source.

As equity markets struggled, so too did preferreds with market indicators reflecting losses.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.15% at the market close Monday. The U.S. iShares Preferred Stock ETF was down 0.11%.

While trading volume remained light on Monday, Apollo Global Management LLC’s recently priced 6.375% $25-par series B non-cumulative perpetual preferred shares continued to see active trading.

After spending most of last week at par, the 6.375% preferreds closed Monday’s session below par.

New paper from TriState Capital Holdings Inc. was slow to trade early in Monday’s session. However, trading activity of the depositary shares representing the 6.75% perpetual fixed-to-floating rate series A non-cumulative preferred stock picked up later in the afternoon.

The depositary shares closed the day down, although they are still well above their issue price.

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