American Financial sells $25-par debentures; AIG preferreds active, flat; NiSource gains

By James McCandless

San Antonio, March 11 – The preferred space saw mixed trading amid the pricing of a new issue.

American Financial Group, Inc. priced a $125 million offering of $25-par 40-year subordinated debentures with a coupon of 5.875%.

The debentures are callable on or after March 30, 2024 at par. Prior to that, they are callable within 90 days after a tax event or ratings agency event.

Leading the secondary, American International Group, Inc.’s new 5.85% series A non-cumulative perpetual preferred stock was active but level.

The preferreds, trading under the temporary symbol “AIGGZ,” closed the day level at $25.10 on volume of about 848,000 shares.

Utilities name NiSource Inc.’s 6.5% series B fixed-rate reset cumulative redeemable perpetual preferreds improved.

The preferreds (NYSE: NIPrB) gained 5 cents to close at $26.73 on volume of about 692,000 shares.

Sector peer Southern California Edison, a subsidiary of Edison International, saw its 5% cumulative trust preference securities decline.

The preferreds (NYSE: SCEPrL) dropped 11 cents to close at $20.56 on volume of about 490,000 shares.

Real estate investment trust Digital Realty Trust, Inc.’s 5.85% cumulative redeemable preferred stock was on a positive track.

The preferreds, trading under the temporary symbol “DLRPO,” picked up 11 cents to close at $24.83 with about 533,000 shares trading.

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