Ellington sells preferreds; Bank of America better; Energy Transfer lifted

By James McCandless

San Antonio, Oct. 16 – The preferred market saw mostly positive movement during Wednesday’s session.

In primary activity, Investcorp Credit Management BDC, Inc. priced an additional $15 million of its 6.125% notes due July 1, 2023.

Ellington Financial Inc. priced a $100 million offering of $25-par series A fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.75%.

At the top of trading again, Bank of America Corp.’s 5% series LL non-cumulative preferred stock closed better.

Elsewhere in finance, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were also seen climbing.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds were active but unmoved.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units followed the day’s trend.

Insurance provider Allstate Corp.’s 5.2% series H fixed-rate non-cumulative perpetual preferred stock jumped up.

Investcorp prices

Investcorp priced an additional $15 million of its 6.125% notes (Egan-Jones: BBB-) due July 1, 2023.

There is a $2.25 million greenshoe.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and BB&T Capital Markets are the joint bookrunners.

The deal brings the total outstanding to $49.5 million.

The notes are redeemable on or after July 1, 2020.

Ellington’s deal

Ellington priced a $100 million offering of $25-par series A fixed-to-floating rate cumulative redeemable preferred stock (Egan-Jones: BBB+) with an initial dividend of 6.75%.

There is a $15 million greenshoe.

Morgan Stanley & Co. LLC, UBS Securities LLC, Keefe, Bruyette & Woods, Inc. and Sandler O’Neill & Partners, LP are the joint bookrunners.

The dividend is fixed until Oct. 30, 2024, then converts to a rate of Libor plus 519.6 basis points.

The preferreds are redeemable on or after Oct. 30, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control.

Bank of America better

At the top of secondary trading for a second day, Bank of America’s 5% series LL non-cumulative preferred stock closed better.

The preferreds (NYSE: BACPrA) were up 7 cents to close at $25.75 on volume of about 617,000 shares.

On Tuesday, the preferreds dropped 6 cents.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities also climbed by the end of the day.

The preferreds (NYSE: ALLYPrA) gained 11 cents to close at $26.32 with about 544,000 shares trading.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds were active but ultimately unchanged.

The preferreds (NYSE: COFPrI) ended level at $25.07 on volume of about 409,000 shares.

On Tuesday, the preferreds picked up 3 cents.

Energy Transfer gains

Meanwhile, oil and gas name Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units followed the day’s positive trend.

The preferreds (NYSE: ETPPrE) improved by 14 cents to close at $25.72 with about 306,000 shares trading.

On Tuesday, the preferreds added 2 cents.

Allstate jumps

Insurance provider Allstate’s 5.2% series H fixed-rate non-cumulative perpetual preferred stock jumped higher throughout the session.

The preferreds (NYSE: ALLPrH) garnered 19 cents to close at $26.43 on volume of about 206,000 shares.

On Tuesday, the preferreds fell 14 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.28% by the close, shooting past a 0.01% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was up 7 cents to $37.56.

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