Monmouth REIT, New York Community announce new deals; Apollo Global up; GSEs lower

By Colin Hanner

Chicago, March 6 – Quietness was the word of the day in the preferred market on Monday, a market source said, adding that the market was relatively flat and volume was light, though a few new issues were announced.

“It was really quiet, but Mondays typically are these days,” a market source said.

The Wells Fargo Hybrid and Preferred Securities index closed down 5 basis points. The U.S. iShares Preferred Stock index was down 1 bp.

Monmouth Real Estate Investment Corp. announced Monday that it will sell an add-on to its 6.125% series C cumulative redeemable preferreds (NYSE: MNRPrC), which were down 53 cents, or 2.13%, to $24.40. The issuer will use the proceeds to call its 7.875% series B cumulative redeemable preferreds (NYSE: MNRPrB). Those preferreds fell 15 cents, or 0.59%, to $25.35.

The remaining proceeds will be used to reduce the outstanding amount under its unsecured revolving credit facility, to purchase properties and fund expansions of existing properties and for general corporate purposes.

RBC Capital Markets, BMO Capital Markets and J.P. Morgan Securities LLC will run the books.

Late in the day, New York Community Bancorp, Inc. announced it intends to offer a new series of fixed-to-floating rate non-cumulative perpetual preferreds, according to a news release.

Terms of the securities, including dividend rate, issuance amount and redemption provisions, will depend on market conditions when the offering is expected to launch and price later this week, the release said.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and BofA Merrill Lynch will run the books.

In recently priced deals, PennyMac Mortgage Investment Trust’s upsized $115 million of 8.125% series A fixed-to-floating rate cumulative redeemable preferreds were trading at $24.65, a market source said.

And Apollo Global Management LLC’s $250 million of 6.375% series A preferreds – trading under the temporary ticker “APLMP” – were quoted at $24.82, a market source said, adding they were 5 cents better on a volume weight average basis.

In the secondary market, government-sponsored enterprises were at the top of the most-active list.

Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were down 8 cents, or 1.02%, to $7.80.

And Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) declined 17 cents, or 2.26%, to $7.34.

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