Fidus Investment to sell $25-par notes; secondary market weakens; recent deals list

By Abigail W. Adams

Portland, Me., Jan. 30 – In the first new deal of the week, Fidus Investment Corp. announced an offering of $25-par five-year fixed-rate notes prior to the market open on Tuesday.

While a new deal is in the works, the secondary market continued its losing streak, ending Tuesday in the red. The overall secondary market has ended in the red for three consecutive trading days.

Legacy Reserves LP’s 8% series A and series B fixed-to-floating rate cumulative redeemable preferred units were among the heaviest hit on Tuesday with both units seeing significant losses.

Several recent deals’ listing on the New York Stock Exchange and Nasdaq are now complete. Most of the new preferreds were down during Tuesday’s session.

However, Saul Centers, Inc.’s 6.125% series D depositary shares were up.

In its deal, Fidus plans to price an offering of $25-par five-year fixed-rate notes. Keefe, Bruyette & Woods is the bookrunner for the offering, which carries a greenshoe.

The notes are callable at par on or after a specified date. There are no put options. Dividends will be payable quarterly.

The notes will be listed on the Nasdaq Global Select Market under the ticker “FDUSL.”

In the secondary market, the Wells Fargo Hybrid & Preferred Securities Financial index was down 33 basis points at market close. The U.S. iShares Preferred Stock ETF was down 0.43%.

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