Morning Commentary: B. Riley to tap market; Digital Realty at par; Goldman Sachs up

By James McCandless

San Antonio, Oct. 2 – The preferred market began the week’s midpoint on a downward trend with the Wells Fargo Hybrid & Preferred Securities Financial index off by 0.23%.

The primary market saw B. Riley Financial, Inc. announce plans to price a $35 million offering of $25-par series A cumulative perpetual preferred stock with a dividend in the 6.875% area.

B. Riley FBR, Inc., Incapital LLC, Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. LLC are the joint bookrunners.

Co-managers are Wedbush Securities Inc., William Blair & Co, LLC and Boenning & Scattergood, Inc.

The preferreds are redeemable after five years. Prior to that, the preferreds are redeemable within 90 days after a delisting event at par and within 120 days after a change-of-control at par.

Meanwhile, in the secondary, B. Riley’s established 6.5% senior notes due 2026 were under water as the morning started.

The notes (Nasdaq: RILYN) were down 14 cents to $24.97 on volume of about 71,000 notes.

Elsewhere, real estate investment trust Digital Realty Trust, Inc.’s new $300 million 5.2% series L cumulative redeemable preferred stock was seen trading at par on its first day.

The preferreds, trading under the temporary symbol “DLRTP,” were trading at $25.00 with about 1.5 million shares trading.

At the top of the finance space, Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds were gaining slightly.

The preferreds (NYSE: GSPrD) were better by 1 cent to $21.96 on volume of about 78,000 shares.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds were weaker.

The preferreds (NYSE: COFPrI) were declining by 8 cents to $24.90 with about 68,000 shares trading.

Bank of America Corp.’s 6% series EE non-cumulative preferred stock followed the negative shift.

The preferreds (NYSE: BACPrA) were down 3 cents to $25.91 on volume of about 60,000 shares.

© 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.