Morning Commentary: Fidus prices $43.48 million baby bonds; secondary breaks losses; GE in focus

By Abigail W. Adams

Portland, Me., Jan. 31 – The primary market’s silence and the secondary market’s losing streak were broken on Wednesday.

While there has yet to be a new offering of preferred stock this week, a new baby bond deal priced after the market close on Tuesday.

Fidus Investment Corp. priced $43.48 million of $25-par five-year notes after the market close on Tuesday with a coupon of 5.875%.

Keefe, Bruyette & Woods is the sole bookrunner for the offering, which carries a greenshoe of $6.52 million.

The notes will be listed on the Nasdaq Global Select Market under the ticker “FDUSL.” They are expected to be rated A- by Egan-Jones Ratings Co.

Net proceeds are expected to be $41.8 million, or $48.1 million if the greenshoe is exercised.

Proceeds will be used to repay indebtedness under the company’s credit facility.

After a three-day losing streak, the secondary market for preferreds has returned to green. In morning trading Wednesday, the Wells Fargo Hybrid & Preferred Securities Financial index was up 17 basis points.

The U.S. iShares Preferred Stock ETF was up 0.22%.

General Electric Co.’s 4.875% notes due 2052 and 4.7% notes due 2053 were in focus, surpassing their average trading volume early in the session.

GE’s 4.875% notes gained 181 cents, or 7.77%, to trade above par at $25.10.

GE’s 4.7% notes gained 139 cents, or 5.97%, to $24.74 early Wednesday.

© 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.