Morning Commentary: Gladstone prices new preferreds, to redeem others; Oaktree better

By James McCandless

San Antonio, Aug. 15 – Gladstone Investment Corp. priced a $65 million offering of $25-par series E cumulative term preferred stock due 2025 with a dividend of 6.375%.

The deal was announced Tuesday morning.

There is a $9.75 million greenshoe.

BMO Capital Markets Corp., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. are the joint bookrunners.

Gladstone Land Corp. said it plans to issue a conditional redemption notice for its 6.75% series B cumulative term preferred stock due Dec. 31, 2021 and its 6.5% series C cumulative term preferred stock due May 31, 2022 using proceeds from the new offering of series E cumulative term preferred stock due 2025.

Oaktree Capital Group, LLC’s recent $235 million of 6.55% series B preferred units improved, leading secondary trading.

The preferreds (NYSE: OAKPrB) were up 2 cents to $24.99 on volume of about 57,000 shares.

U.S. Bancorp’s new $575 million of 5.5% series K non-cumulative perpetual preferred stock was flat in early trading.

The preferreds, trading under the temporary symbol “USBLL,” were level at $25.11 with about 42,000 shares trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.03% in early trading after a 0.01% gain at market close on Tuesday.

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