Morning Commentary: American Homes, Seaspan prep offerings; Qwest’s $25-par notes dip

By James McCandless

San Antonio, Sept. 12 – Primary activity increased in the preferred market on Wednesday with both American Homes 4 Rent and Seaspan Corp. seen as potentially tapping the market.

American Homes 4 Rent plans to price an offering of $25-par series H cumulative redeemable perpetual preferred shares.

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

The preferreds are redeemable after five years.

Also in the primary market, Seaspan plans to price an offering of $25-par series I fixed-to-floating rate cumulative redeemable perpetual preferred shares.

Morgan Stanley, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Stifel, Nicolaus & Co., Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

The preferreds are redeemable after five years.

In early secondary activity, Qwest Corp.’s $25-par notes edged lower.

Qwest’s existing 6.5% notes due 2056 (NYSE: CTBB) were down 2 cents to $23.95 on volume of about 76,000 notes.

AllianzGI Convertible & Income Fund II’s new $109 million of 5.5% series A cumulative preferred shares were seen improving in early trading.

The preferreds, trading under the temporary symbol “NCZIP,” were up 3 cents to $24.87 with about 61,000 shares trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.05% in early trading, adding to the 0.01% gain on Tuesday.

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