Morning Commentary: Activity in GSEs picks up as Senate looks toward reform; Capitala not yet freed

By Stephanie N. Rotondo

Seattle, May 11 – GSE-linked preferred stocks were back on center stage early Thursday, following a Wall Street Journal report that the Senate Banking Committee was kicking off a revamp effort.

The news appeared to excite investors, and Fannie Mae and Freddie Mac preferreds were not only active in early dealings but better too.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were up 64 cents, or 9.8%, at $7.17. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) were up 52 cents, or 8.28%, at $6.80.

Meanwhile, Capitala Finance Corp.’s $70 million of 6% $25-par notes due 2022 were not yet free to trade as of mid-morning.

One trader quoted the issue at $24.90 bid, par offered. Another saw the notes in a $24.88 to $24.97 context.

The deal came late Wednesday, upsized from $50 million and in line with price talk.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Janney Montgomery Scott LLC, William Blair & Co. LLC and Wunderlich Securities Inc. ran the books.

GasLog Partners LP’s 8.625% series A fixed-to-floating rate cumulative redeemable preference units – a deal from Monday – were meantime seen holding around par.

The $125 million deal was increased from $50 million. It freed to trade early Tuesday and is trading under a temporary ticker, “GSLGF.”

Morgan Stanley & Co. LLC, UBS Securities LLC, Stifel Nicolaus & Co. Inc. and Citigroup Global Markets Inc. were the joint bookrunners.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.