Capital Southwest sells $25-par notes; Cedar Realty plans tap; preferred stocks weaken

By Cristal Cody

Tupelo, Miss., Dec. 12 – A couple of preferred stock deals joined the primary market pipeline, while the preferred market overall ended mostly weaker on Tuesday.

Capital Southwest Corp. announced and later priced an upsized $50 million of $25-par notes due 2022. The notes were increased from an initially announced $35 million. There is a $7.5 million greenshoe.

The 5.95% notes priced at 97 via bookrunner Keefe, Bruyette & Woods, a Stifel company, and lead managers Janney Montgomery Scott and Ladenburg Thalmann, according to a news release.

The Dallas-based middle market lender plans to apply to list the securities on the Nasdaq exchange under the symbol “CSWCL.”

Cedar Realty Trust, Inc. also announced on Tuesday that it plans to reopen its 6.5% series C cumulative redeemable preferred stock.

Raymond James & Associates, Inc. and KeyBanc Capital Markets Inc. are the bookrunners.

The Port Washington, N.Y.-based real estate investment trust originally sold $75 million of the series C preferreds on Aug. 16 with an $11.25 million greenshoe.

Proceeds will be used to partially redeem the company's 7.25% series B cumulative redeemable preferred stock.

The series C preferred stock, which trades on the New York Stock Exchange under the symbol “CDRPrC,” fell 1 cent, or 0.16%, to end the day at $6.11.

In the broader market, preferreds overall remained weak during the session.

The Wells Fargo Hybrid and Preferred Securities index closed down 16 basis points.

The U.S. iShares Preferred Stock ETF dropped 36 bps.

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