Morning Commentary: OFS Capital sells $25-par notes; Wells Fargo leads secondary upward

By James McCandless

San Antonio, Oct. 12 – More activity in the preferred primary market was paired with an upward trend in the secondary on Friday as the Wells Fargo Hybrid & Preferred Securities Financial index rose 0.26%.

OFS Capital Corp. sold $43.5 million of $25-par notes due Oct. 31, 2025 with a coupon at 6.5% at par, according to filings with the Securities and Exchange Commission.

The offering was announced on Thursday and priced late Thursday above size talk of $35 million and matching talk for a coupon in the 6.5% area.

The underwriters have a 30-day $6,525,000 greenshoe.

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

Meanwhile, leading the secondary, Wells Fargo & Co.’s 5.5% series X non-cumulative perpetual class A preferred stock rose.

The preferreds (NYSE: WFCPrX) were up 5 cents to $24.07 on volume of about 113,000 shares.

Elsewhere in the financial space, JPMorgan Chase & Co.’s recent issue of 5.75% series DD non-cumulative preferred stock also improved.

The preferreds (NYSE: JPMPrD) were up 10 cents to $25.00 with about 76,000 shares trading.

Also starting the day rising was Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock.

The preferreds (NYSE: BACPrK) were up 8 cents to $25.06 on volume of about 49,000 shares.

In the insurance sector, MetLife, Inc.’s 5.625% series E non-cumulative preferred stock gained.

The preferreds (NYSE: METPrE) were up 7 cents to $24.32 with about 39,000 shares trading.

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