Invesco Mortgage's issue lists on NYSE; Dynex freed from syndicate; secondary ends week firm

By Stephanie N. Rotondo

Phoenix, July 27 - Preferred stocks continued to hold up during Friday's trading session, according to a trader.

"Everybody's liking our market because everything is so cheap," he said.

Though he noted that he had not seen any new issue filings during the day's session, he speculated that "August is going to be just as busy" in the primary arena. Banks in particular could start to launch deals after earnings season ends and institutions exit their "quiet periods."

Another market source said the preferred realm was "basically up, pretty much from the get-go. Liquidity for a Friday in the summer was not so bad."

Invesco Mortgage Capital Inc.'s 7.75% series A cumulative redeemable preferreds officially listed on the New York Stock Exchange on Friday. The $135 million issue priced July 19.

Meanwhile, Dynex Capital Inc.'s $50 million of 8.5% series A cumulative redeemable preferreds freed to trade, according to a trader. The deal priced Wednesday.

Invesco issue hits NYSE

Invesco Mortgage Capital's $135 million issue of 7.75% series A cumulative redeemable perpetual preferred stock listed on the NYSE Friday under the symbol "IVRPRA."

The issue traded up a dime to $24.95.

When the deal was priced, it was upsized from $100 million and was in line with talk.

Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners. JMP Securities LLC, Keefe, Bruyette & Woods Inc. and Mitsubishi UFJ Securities (USA) Inc. were the co-managers.

Proceeds will be used to purchase agency residential mortgage-backed securities, non-agency RMBS, commercial mortgage-backed securities and certain residential and commercial mortgage loans.

Invesco Mortgage Capital is an Atlanta-based company primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans.

Dynex leaves syndicate

Dynex Capital's $50 million of series A cumulative redeemable perpetual preferred stock from Wednesday freed from the syndicate on Friday, a trader reported.

The trader saw the issue trading between $24.90 and $25.10.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Jefferies & Co. are the joint bookrunners. Sterne, Agee & Leach, Inc., Ladenburg Thalmann & Co. Inc., and MLV & Co. LLC are the co-managers.

Dynex will apply to list the new securities on the NYSE under the ticker symbol "DXPA."

Dynex is a Glen Allen, Va.-based mortgage real estate investment trust.

BB&T, Black & Decker stronger

Among other recent deals, BB&T Corp.'s $1 billion of 5.625% series E noncumulative perpetual preferred stock was "still not listed," a trader said, seeing the preferreds trade at $25.10.

The issue came upsized and at the tight end of talk on Tuesday.

Stanley Black & Decker Inc.'s $750 million of 5.75% $25-par junior subordinated notes due July 25, 2052 - an issue that listed on the NYSE Thursday under the symbol "SWJ" - was meantime again the day's most actively traded security.

The notes ended the session up 2 cents at $25.70.

The issue priced July 19.

Secondary mostly firm

Away from recent issues, Citigroup Inc. was among the busiest traders of the day.

The $100-par 7.5% tangible dividend enhanced common stock (NYSE: CPH) closed up $2.68, or 3.21%, at $86.28, as the 7.875% fixed-to-floating trust preferreds (NYSE: CPN) fell a nickel to $27.29.

Qwest Corp.'s 7% notes due 2052 (NYSE: CTU) were also active, rising 30 cents, or 1.15%, to $26.40.

Among foreign issuers, Royal Bank of Scotland Group plc's 6.35% series N noncumulative preference shares (NYSE: RBSPN) increased 19 cents, or 1.01%, to $19.01.

© 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.