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Morning Commentary: Capitala prices $25-par notes; Commerce Bancshares selling noncumulative paper
By Stephanie N. Rotondo
Phoenix, June 12 – The primary preferred stock market continued to be busy come Thursday.
Capitala Finance Corp. priced $100 million of 7.125% $25-par notes due 2021, the company said in a press release issued early in the session.
The deal was announced on Wednesday, with price talk in a 7.125% to 7.25% range.
The offering was initially expected to be in the $50 million area, though a trader had speculated that the issue would grow.
A trader said he wasn’t seeing any offers for the notes as of mid-morning.
“I think it went really well,” he said. “So there’s really no stock to be had.”
Deutsche Bank Securities Inc., Keefe Bruyette & Woods and BB&T Capital Markets were the joint bookrunners. Janney Montgomery Scott LLC, Oppenheimer & Co., William Blair and Wunderlich Securities Inc. were the lead managers.
Meanwhile, Commerce Bancshares Inc. launched an offering of series B noncumulative perpetual preferreds.
A trader said the deal was being talked in the 6.125% area.
“It’s pretty tight,” he said, noting that he had yet to see any gray markets for the paper.
“They are probably doing it mostly themselves, with no real selling group,” he said.
Morgan Stanley & Co. LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.
Late Wednesday, Colony Financial Inc. said it was planning a sale of series B cumulative redeemable perpetual preferred stock.
A trader said there was a less 40-cents bid in the gray market.
BofA Merrill Lynch, JPMorgan and UBS Securities LLC are the joint bookrunners. Keefe Bruyette & Woods is the co-manager.
Overall, the preferred market was faring rather well, as the Wells Fargo Hybrid and Preferred Securities index was up 12 basis points at mid-morning.
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