Morning Commentary: FAT Brands prices; Eagle Point on deck; Wells Fargo declines

By James McCandless

San Antonio, July 14 – At the start of the Tuesday session, the preferred market was under pressure with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.40%.

In the primary space, FAT Brands Inc. priced a $9 million offering of $25-par series B cumulative preferred stock with a dividend of 8.25%.

There is a $1.35 million greenshoe.

Each share of the preferred stock will come with five common stock purchase warrants.

ThinkEquity is the bookrunner.

Also, Eagle Point Credit Co. Inc. announced plans to price up to $25 million more of its $25-par 7.75% series B term preferred stock in an at-the-market offering.

The deal also includes a $125 million offering of common stock.

B. Riley FBR, Inc. and National Securities Corp. are the placement agents.

The preferreds are required to be redeemed on Oct. 30, 2026 at par. Prior to that, the preferreds are redeemable after Oct. 29, 2021.

Leading the morning’s secondary activity, Wells Fargo & Co.’s 5.5% series X non-cumulative perpetual class A preferred stock and 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds were both in decline.

The series X preferreds (NYSE: WFCPrX) were down 13 cents to $24.97 on volume of about 64,000 shares.

The series Q preferreds (NYSE: WFCPrQ) were shedding 17 cents to $24.50 on volume of about 32,000 shares.

Elsewhere in the finance space, AXA Equitable Holdings, Inc.’s 5.25% series A non-cumulative preferred stock were also falling.

The preferreds (NYSE: EQHPrA) were diving 70 cents to $23.00 with about 62,000 shares trading.

Utilities provider Southern Co.’s 6.25% series 2015A junior subordinated notes due 2075 started the session on the positive side.

The notes (NYSE: SOJA) were adding 3 cents to $25.30 on volume of about 29,000 notes.

Meanwhile, insurance carrier National General Holdings Corp.’s 7.5% series C non-cumulative preferred stock was also being lifted.

The preferreds (Nasdaq: NGHCN) were picking up 4 cents to $25.70 with about 27,000 shares trading.

Real estate investment trust New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock was weakening.

The preferreds (NYSE: NRZPrC) were losing 17 cents to $16.46 on volume of about 24,000 shares.

© 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.