Preferred primary sees small deals; AT&T’s $25-par notes slide; KeyCorp edges lower

By James McCandless

San Antonio, June 27 – The preferred market saw an active day in the primary space with robust secondary trading.

CM Finance Inc. priced a $30 million offering of $25-par notes due 2023 at 6.125%.

Chicken Soup for the Soul Entertainment, Inc.’s new $15 million of $25-par series A cumulative redeemable perpetual preferred stock was seen trading below par.

In the secondary market, AT&T Inc.’s 5.35% $25-par global notes due 2066 topped trading after announcing the acquisition of digital advertising name AppNexus.

KeyCorp’s series E fixed-to-floating rate perpetual preferreds saw a spike in activity amid a slight decline in price.

Enstar Group Ltd.’s new $400 million 7% series D fixed-to-floating rate perpetual preferred shares edged lower.

CM Finance prices

CM Finance priced a $30 million offering of $25-par notes due 2023 at 6.125%.

Keefe, Bruyette & Woods, Inc. and Ladenburg Thalmann & Co. Inc. are the joint bookrunners.

The offering was announced Wednesday morning (see related story elsewhere in this issue).

Chicken Soup below par

Chicken Soup for the Soul’s new $15 million of 9.75% $25-par series A cumulative redeemable perpetual preferred stock came to market on Wednesday.

Ladenburg Thalmann & Co. Inc. is the bookrunner.

The offering, downsized from $25 million, was launched on June 13.

The preferreds (Nasdaq: CSSEP) were spotted trading below par at $24.90.

AT&T off

AT&T’s 5.35% $25-par global notes due 2066 took the top spot in secondary trading after the company announced that it has acquired digital advertising name AppNexus.

The notes (NYSE: TBB) were down 6 cents to close at $25.16 with about 676,000 shares trading.

KeyCorp down

KeyCorp’s 6.125% series E fixed-to-floating rate perpetual non-cumulative preferred stock saw a spike in trading while declining.

The preferreds (NYSE: KEYPrI) were down 2 cents to $26.61 with about 661,000 in volume.

Enstar slides

Enstar’s new $400 million 7% series D fixed-to-floating rate perpetual preferred shares edged lower in trading.

The preferreds, trading under the temporary ticker “ENSTF,” was down 1 cent to $25.31 with about 364,000 shares exchanged.

On Tuesday, the preferreds rose 8 cents.

The deal priced on June 20.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.09% at market close, reversing a 0.06% gain in early trading on Wednesday.

The iShares US Preferred Stock ETF was down 3 cents to $37.55.

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