OFS Capital sells $25-par notes; Capital One preferreds higher; ANGC negative

By James McCandless

San Antonio, Oct. 9 – The preferred market saw an overall positive shift on Wednesday as top traders carried that trend.

The primary space saw OFS Capital Corp. sell a $50 million offering of $25-par seven-year notes at par with a coupon of 5.95%.

Leading the secondary, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock pushed higher.

Elsewhere in finance, Bank of America Corp.’s 5% series LL non-cumulative preferred stock spent the day rising.

Sector peer Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferred stock followed the trend.

Meanwhile, REIT AGNC Investment Corp.’s 7% series C fixed-to-floating rate cumulative redeemable preferreds ended on the negative side.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units also saw a modest loss.

OFS Capital prices

In the primary space, OFS Capital sold a $50 million offering of $25-par seven-year notes (Egan-Jones: BBB+) at par with a coupon of 5.95%.

There is a $7.5 million greenshoe.

The offering was announced on Tuesday.

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

The notes are redeemable on or after Oct. 31, 2021.

Capital One higher

Leading the way in the secondary, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock pushed higher in Wednesday’s session.

The preferreds (NYSE: COFPrI) were up 9 cents to close at $24.98 on volume of about 506,000 shares.

On Tuesday, the preferreds added 5 cents.

Elsewhere in the finance space, Bank of America’s 5% series LL non-cumulative preferred stock also spent the day rising.

The preferreds (NYSE: BACPrN) gained 6 cents to close at $25.70 with about 234,000 shares trading.

On Tuesday, the preferreds tacked on 1 cent.

Sector peer Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferred stock followed the prevailing trend.

The preferreds (NYSE: MSPrK) picked up 5 cents to close at $27.17 on volume of about 220,000 shares.

AGNC negative

Meanwhile, real estate investment trust AGNC’s 7% series C fixed-to-floating rate cumulative redeemable preferreds ended trading on the negative side.

The preferreds (Nasdaq: AGNCN) lost 1 cent to close at $25.65 with about 296,000 shares trading.

Energy Transfer off

Oil and gas name Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units also saw a modest loss.

The preferreds (NYSE: ETPPrE) dipped 1 cent to close at $25.29 on volume of about 287,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished higher by 0.11%, remaining unchanged from a 0.11% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was up 8 cents to $37.24.

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