Oxford Square offers $25-par notes; Duke Energy preferreds top par; Citigroup higher

By James McCandless

San Antonio, March 26 – The preferred market saw a mixed day as the primary space rumbled along.

In primary activity, Oxford Square Capital Corp. said it plans to price an offering of $25-par notes due 2026.

Meanwhile, Duke Energy Corp.’s new $1 billion 5.75% series A cumulative redeemable perpetual preferred stock closed above par.

Sector peer Southern California Edison, a subsidiary of Edison International, saw its 5.375% cumulative fixed-to-floating rate trust preference securities and its 5% cumulative trust preference securities close mixed.

In finance, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities pushed higher.

Real estate investment trust National Retail Properties, Inc.’s 5.7% series E cumulative redeemable preferreds were negative.

Insurance name American International Group, Inc.’s 5.85% series A non-cumulative perpetual preferred stock gained.

Oxford preps notes

In the primary market, Oxford Square plans to price an offering of $25-par notes due 2026.

Ladenburg Thalmann & Co. Inc. and BB&T Capital Markets are the joint bookrunners.

Lead managers are B. Riley FBR, Inc. and Incapital LLC.

National Securities Corp. is the co-manager.

The notes are redeemable after three years.

Duke over par

Meanwhile, Duke Energy’s new $1 billion 5.75% series A cumulative redeemable perpetual preferred stock was spotted closing its first trading day above par.

The preferreds, trading under the temporary symbol “DUEKL,” were seen landing at $25.39 on volume of about 15.9 million shares.

The deal priced on Monday.

Elsewhere in the sector, Southern California Edison’s 5.375% cumulative fixed-to-floating rate trust preference securities and its 5% cumulative trust preference securities were mixed by the end of the session.

The 5.375% preferreds (NYSE: SCEPrJ) lost 23 cents to close at $21.28 with about 419,000 shares trading.

The 5% preferreds (NYSE: SCEPrL) were up 3 cents to close at $20.27 with about 332,000 shares trading.

News broke on Tuesday that the company had been issued a fine by the Nuclear Regulatory Commission for improper handling of nuclear canisters at a closed power generating station.

Citigroup higher

Meanwhile, in the finance space, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities moved upward.

The preferreds (NYSE: CPrN) picked up 17 cents to close at $27.11 on volume of about 558,000 shares.

National Retail down

Real estate investment trust National Retail Properties’ 5.7% series E cumulative redeemable preferreds were negative by the close.

The preferreds (NYSE: NNNPrE) lost 5 cents to close at $25.11 with about 427,000 shares trading.

On Monday, the preferreds picked up 3 cents.

AIG improves

Insurance provider AIG’s 5.85% series A non-cumulative perpetual preferred stock was gaining on Tuesday.

The preferreds (NYSE: AIGPrA) tacked on 10 cents to close at $25.25 on volume of about 323,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.03% at the close, giving back a 0.07% gain from early activity.

The iShares US Preferred Stock exchange-traded fund was up 10 cents to $36.43.

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