Deal flow steady as Two Harbors prices; TriplePoint frees, hits par; American Homes dips

By Stephanie N. Rotondo

Seattle, July 12 – The preferred stock primary market continued to churn out deals on Wednesday, as Two Harbors Investment Corp. priced a new issue.

The New York-based real estate investment trust sold $250 million of 7.625% series B fixed-to-floating rate cumulative redeemable preferreds. The deal came upsized from an expected $75 million and tight to the 7.75% initial price talk.

“That’s a big difference,” a market source said of the size increase. “But it’s an issuer’s market out there.”

He saw the issue trade as high as $25.02 in the gray market.

Another trader saw the issue at $24.70 bid earlier in the day.

Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and Keefe Bruyette & Woods Inc. ran the books.

The dividend will be fixed through July 27, 2027 and will float at Libor plus 535.2 basis points after that date.

The preferreds become redeemable July 27, 2027 at par plus accrued dividends.

From Tuesday’s business, TriplePoint Venture Growth BDC Corp.’s $65 million of 5.75% $25-par notes due 2022 freed from the syndicate in afternoon dealings, according to a market source.

At the end of the day, the notes were seen trading “in size” at par.

And, American Homes 4 Rent’s $115 million of 5.875% series G cumulative redeemable preferreds – a deal priced Monday – were lower on the day, slipping 3 cents to $24.96.

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