KKR’s units free to trade; market looks to clean up recent deals; European banks decline

By Stephanie N. Rotondo

Seattle, June 14 – The preferred stock new issue space took a break Tuesday, as the market sought to put away all the issues that have come in the last week.

“Generally, everything is about the same as it was yesterday,” a trader said.

KKR & Co. LP’s $155 million of 6.5% series B perpetual preferred units – a deal from Monday – were freed to trade by mid-morning, according to a trader.

He pegged the issue at $24.92 bid, $24.97 offered.

At the bell, another market source said the paper finished at par.

The deal came tight to the 6.625% price talk and upsized from $100 million.

From the previous week’s business, Validus Holdings Ltd.’s $150 million of 5.875% series A noncumulative preference shares were seen at $24.75 bid, $24.90 offered. That deal is trading under the temporary ticker “VRHSP.”

Wells Fargo & Co.’s $1 billion of 5.5% series X class A noncumulative preferreds were “moving up,” a trader said. He placed the preferreds at $25.15.

Western Alliance Bancorporation’s $175 million of $25-par subordinated debentures due 2056 were meantime seen in a $24.60 to $24.62 context.

In new listings, Ares Management LP’s $275 million of 7% series A preferred units hit the New York Stock Exchange on Tuesday.

The ticker symbol is “ARESPA.” Paper was trading at $24.96 at the close, down from opening levels of $25.04.

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