Morning Commentary: Fidus to price fixed-rate note offering; secondary market still losing

By Abigail W. Adams

Portland, Me., Jan. 30 – Fidus Investment Corp. announced an offering of $25-par five-year fixed-rate notes prior to market open Tuesday. Keefe, Bruyette & Woods is the sole bookrunner for the offering, which carries a greenshoe.

The notes are callable at par on or after a specified date. There are no put options.

Dividends will be paid quarterly.

The notes will be listed on the Nasdaq Global Select Market under the ticker “FDUSL.”

The preferreds secondary market was again in the red in early trading Tuesday, after closing Monday and last Friday in negative territory as well.

The Wells Fargo Hybrid & Preferred Securities Financial Index was down 34 basis points. The U.S. iShares Preferred Stock ETF was down 0.35%.

Legacy Reserves LP’s 8% series A and series B fixed-to-floating rate cumulative redeemable preferred units were among the heaviest hit in early trading Tuesday.

The 8% series A units, which trade under the ticker “LGCYP,” were down 42 cents, or 6.99%, to $5.59 in early trading Tuesday

The 8% series B units, which trade under the ticker “LGCYO,” were down 21 cents, or 3.52%, to $5.75.

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