AGNC Investment prices upsized preferreds; Arch Capital free to trade; recent deals eyed

By Stephanie N. Rotondo

Seattle, Aug. 15 – The preferred stock new issue market continued to see a steady deal flow as AGNC Investment Corp. priced a $300 million offering of 7% series C fixed-to-floating rate cumulative redeemable preferred stock.

Price talk was 7% to 7.125%, according to a market source.

The size of the deal was increased from $150 million.

The paper was seen at $24.62 bid, $24.90 offered in the early gray market.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC and Keefe Bruyette & Woods Inc. are running the books.

The company intends to use come of the deal’s proceeds to redeem all of its 8% series A cumulative redeemable preferreds (Nasdaq: AGNCP). In the wake of the announcement, the series As declined a dime to $25.27 in well above-average trading.

Meanwhile, Arch Capital Group Ltd.’s $200 million of 5.45% series F noncumulative preferreds – a deal priced Monday – freed shortly before lunchtime.

The issue was assigned a temporary ticker, “AHCCF.”

At the close, the preferreds were seen at $24.82, up 32 cents, or 1.31%. Over 3.91 million of the preferreds changed hands.

BofA Merrill Lynch, Morgan Stanley, Wells Fargo Securities LLC and JPMorgan are the bookrunners.

Among last week’s deals, Cherry Hill Mortgage Investment Corp.’s $55 million of 8.2% series A cumulative redeemable preferreds were on the active side, firming a dime to $24.90.

Nearly 723,600 shares were exchanged.

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