AGNC, Oxford Lane on tap; Capital One positive; MetLife preferreds gain

By James McCandless

San Antonio, Feb. 4 – Tuesday’s preferred market session saw volume leaders taking the space higher.

The primary space saw AGNC Investment Corp. price a $500 million offering of $25-par series F fixed-to-floating rate cumulative redeemable preferred stock at par with an initial dividend of 6.125%.

Also, Oxford Lane Capital Corp. announced plans to price an offering of series 2027 term preferred shares.

In first position in the secondary, Capital One Financial Corp.’s recent 4.8% series J fixed-rate non-cumulative perpetual preferred stock was positive.

Elsewhere in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock rose.

Sector peer JPMorgan Chase & Co.’s 6.125% series Y and 6% series EE non-cumulative preferreds diverged.

Insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock gained ground by the close.

Meanwhile, real estate investment trust New Residential Investment Corp.’s 7.125% series B fixed-to-floating rate cumulative redeemable preferred stock finished better.

AGNC prices

The Tuesday primary space saw AGNC price a $500 million offering of $25-par series F fixed-to-floating rate cumulative redeemable preferred stock at par with an initial dividend of 6.125%.

There is a $75 million greenshoe.

Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Goldman Sachs & Co. LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until April 15, 2025, then converts to a floating rate of Libor plus 469.7 basis points.

The preferreds are redeemable on or after April 15, 2025 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

Oxford Lane on tap

Oxford Lane plans to price an offering of series 2027 term preferred shares.

Ladenburg Thalmann & Co. Inc. and BB&T Capital Markets are the joint bookrunners.

The lead managers are Incapital LLC, National Securities Corp., Wedbush Securities Inc. and William Blair & Co. LLC.

Capital One positive

In first position in secondary activity, Capital One’s recent 4.8% series J fixed-rate non-cumulative perpetual preferred stock was positive at the top of the market.

The preferreds, trading under the temporary symbol “CPONZ,” were up 2 cents to close at $25.85 on volume of about 1.1 million shares.

On Monday, the preferreds picked up 4 cents.

Elsewhere, knocked off the top spot in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock rose.

The preferreds (NYSE: WFCPrZ) improved by 6 cents to close at $25.22 with about 917,000 shares trading.

On Monday, the preferreds shifted up 2 cents.

Sector peer JPMorgan’s 6.125% series Y and 6% series EE non-cumulative preferreds diverged in direction.

The series Y preferreds (NYSE: JPMPrF) added 7 cents to close at $25.12 on volume of about 594,000 shares.

On Monday, the preferreds jumped up 7 cents.

The series EE preferreds (NYSE: JPMPrC) shaved off 7 cents to close at $27.91 on volume of about 263,000 shares trading.

MetLife gains

Insurance company MetLife’s 4.75% series F non-cumulative preferred stock gained some ground by the close.

The preferreds (NYSE: METPrF) gained 7 cents to close at $25.73 with about 279,000 shares trading.

On Monday, the preferreds added 8 cents.

New Residential better

Meanwhile, real estate investment trust New Residential’s 7.125% series B fixed-to-floating rate cumulative redeemable preferred stock finished the afternoon in a better position.

The preferreds (NYSE: NRZPrB) garnered 5 cents to close at $26.35 on volume of about 234,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index settled the day up by 0.06%, tripling a 0.02% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was up 6 cents to $38.06.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.