American Express taps market; Gladstone prices term preferreds; Capital One lists on NYSE

By Stephanie N. Rotondo

Phoenix, Nov. 5 – As Republicans took over Congress after the midterm elections, a trader said an expected rally wasn’t being seen in the preferred stock market.

However, the common equity markets were mostly higher during the session.

The Wells Fargo Hybrid and Preferred Securities index was off 10 basis points.

“It certainly was a quiet day overall,” a market source said. “Volume was light, without a doubt.”

American Express Co. added another $1,000-par deal to the new issue calendar Wednesday. The New York-based company launched – and priced – a $750 million offering of series B fixed-to-floating rate noncumulative perpetual preferreds at 5.2%, according to a market source.

Original price guidance was around 5.25%, a trader said.

A source said there was a 100.375 bid for the paper.

Citigroup Global Markets Inc., BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunning managers.

Meanwhile, Gladstone Investment Corp. priced its offering of series B cumulative term preferreds, “finally,” a trader said.

The Janney Montgomery Scott LLC-led deal was originally announced on Monday.

The preferreds came at par to yield 6.75%.

As was expected, Capital One Financial Corp.’s $500 million of 6.7% series D fixed-rate noncumulative perpetual preferred stock began trading on the New York Stock Exchange under the ticker symbol “COFPD.”

The preferreds closed at $25.32.

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