Invesco Mortgage planning new cumulative issue; Bank of America deal gets temporary symbol

By Stephanie N. Rotondo

Phoenix, Sept. 4 – The primary preferred stock market received another new deal for the week on Thursday.

Invesco Mortgage Capital Inc. said it was selling at least $75 million of series B fixed-to-floating rate cumulative redeemable preferreds.

Price talk is around 7.75%, a trader said.

“I imagine they are going to stick with that coupon with the bond market being off,” he said.

“It’s a small deal,” the trader said, seeing paper with a less 40 bid in the early gray market.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and UBS Securities LLC are the joint bookrunners.

The deal had not priced by the end of the day.

As for the company’s existing preferreds, the 7.75% series A cumulative redeemable preferreds (NYSE: IVRPA) fell 35 cents, or 1.39%, to $24.80.

At mid-morning, the shares were trading off 13 cents to $25.02.

“That’s not bad; that’s about right,” a trader said at that time.

In recently priced deals, Bank of America Corp.’s $1 billion of 6.625% series W noncumulative preferreds – a deal that came Tuesday and freed up on Wednesday – were assigned a temporary reporting symbol.

The symbol is “BMMPP.” At Thursday’s close, the preferreds were at $24.90, up from opening levels of $24.88.

Volume in the issue was over 3.06 million shares.

Earlier in the day, a trader pegged the new securities at $24.90 bid, $24.95 offered.

Overall, the market remained weak as it has been all week, but it wasn’t clear why.

“Today kind of sucked in the marketplace,” one market source said. “I’m not really sure what it was. Usually you can tell, to some degree. And in this case, we’re all kind of going like, ‘huh?’”

The Wells Fargo Hybrid and Preferred Securities index ended the day off 64 basis points, or 16 cents per share on average for $25-par preferreds.

Northern Trust Corp.’s $400 million issue of 5.85% series C noncumulative perpetual preferreds (Nasdaq: NTRSP) dropped even more than average, as the shares ended the day down 20 cents at $24.33.

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