Morning Commentary: Market awaits Fed minutes; Hercules on tap; Navios preferreds list on NYSE

By Stephanie N. Rotondo

Phoenix, July 9 – The preferred stock market continued to be on the firm side at midweek, even as investors were sitting back waiting for the latest minutes from the Federal Reserve to be released.

The Wells Fargo Hybrid and Preferred Securities index was up 8 basis points at mid-morning.

Hercules Technology Growth Capital Inc.’s proposed $50 million offering of $25-par notes due 2024 – a deal that was announced Tuesday – was being quoted in a $24.60 to $24.70 context in the early gray market, according to a trader.

However, he noted that he had not seen all that much activity in the issue.

Keefe Bruyette & Woods Inc., Jefferies and RBC Capital Markets are the joint lead managers. Co-managers are BB&T Capital Markets, Janney Montgomery Scott LLC, JMP Securities and Sterne Agee & Leach.

As for coming deals, the trader said he was hearing that the market could “possibly have an active calendar next week,” adding that he had heard very little in regards to the current week.

In recently priced issues, Navios Maritime Holdings Inc.’s $105 million of 8.625% series H cumulative redeemable perpetual preferreds – a deal that priced June 30 – hit the New York Stock Exchange on Wednesday.

The ticker symbol is “NMPH.”

Paper was trading at $24.86 early in the session, being quoted at $24.86 bid, $24.89 offered.

The issue opened the day at $24.90.

On Tuesday, the Athens, Greece-based maritime shipping company said that $15 million of its $15.75 million greenshoe had been exercised, lifting total issuance to $120 million.

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