Capital One lower; New Residential sees slight gain; Saul Centers new preferreds top par

By James McCandless

San Antonio, Sept. 11 – In the midpoint of the week, the preferred market saw mixed movements and no cohesive direction.

In primary activity, AG Mortgage Investment Trust, Inc. priced a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 8%.

Leading the secondary, Capital One Financial Corp.’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock moved lower.

Elsewhere in finance, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds saw an improvement.

Sector peer Bank of America Corp.’s 6% series GG non-cumulative preferred stock was under pressure.

REIT New Residential Investment Corp.’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds rose.

Saul Centers, Inc.’s new $100 million 6% series E cumulative redeemable preferred stock finished its first day above par.

AG Mortgage prices

In primary activity, AG Mortgage priced a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 8%.

There is a $15 million greenshoe.

The deal was announced on Wednesday morning.

BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until Sept. 17, 2024, then converts to a floating rate of Libor plus 647.6 basis points.

The preferreds are redeemable on or after Sept. 17, 2024 at par. Prior to that, they are redeemable within 120 days after a change of control event at par.

Capital One lower

Leading the day’s secondary trading, Capital One’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock moved lower by the close.

The preferreds, trading under the temporary symbol “COFOL,” were down 5 cents to close at $24.70 on volume of about 1.8 million shares.

On Tuesday, the preferreds dropped 19 cents.

Elsewhere in the finance space, JPMorgan’s 6% series EE non-cumulative preferreds saw a modest improvement.

The preferreds (NYSE: JPMPrC) tacked on 5 cents to close at $28.28 with about 616,000 shares trading.

On Tuesday, the preferreds shaved off 3 cents.

Sector peer Bank of America’s 6% series GG non-cumulative preferred stock spent the session under pressure.

The preferreds (NYSE: BACPrB) fell 6 cents to close at $26.72 on volume of about 343,000 shares.

New Residential rises

Meanwhile, real estate investment trust New Residential’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds rose slightly.

The preferreds (NYSE: NRZPrB) added 1 cent to close at $24.93 with about 730,000 shares trading.

On Tuesday, the preferreds dipped 8 cents.

Saul Centers’ new $100 million 6% series E cumulative redeemable preferred stock finished its first trading day above par.

The preferreds, trading under the temporary symbol “SAUXP,” closed above par at $25.03 on volume of about 688,000 shares.

The deal priced on Tuesday.

Indexes diverge

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day up by 0.09%, improving on the 0.12% loss from early Wednesday trading.

The iShares US Preferred Stock ETF was down 2 cents to $37.15.

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