| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for PennyMac Mortgage Investment Trust > News item |
Morning Commentary: PennyMac bringing new preferreds; secondary slips; Colony declines
By Stephanie N. Rotondo
Seattle, June 27 – Talk of a new deal in the preferred stock market proved true Tuesday, as PennyMac Mortgage Investment Trust announced plans to sell $75 million of series B fixed-to-floating rate cumulative redeemable preferreds.
Price talk is 8% to 8.125%, a market source reported.
A trader saw the issue around $24.75 in the early gray market.
As for the company’s existing 8.125% series A fixed-to-floating rate cumulative redeemable preferreds (NYSE: PMTPrA), they were off 24 cents, or nearly 1% at $25.48 at mid-morning.
Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets are running the books.
The dividend rate will begin to float on June 15, 2024. The paper also becomes redeemable on that date.
Proceeds will be used to fund the company’s business and its investment activities, to repay debt, to repurchase outstanding common stock under a share repurchase program and for other general corporate purposes.
Traders had been predicting on Monday that a non-rated real estate investment trust deal could be seen in the market with a new deal as early as Tuesday.
The secondary was trending lower, even as market indicators came in mixed.
The Wells Fargo Hybrid and Preferred Securities Index was up 4 basis points. But the U.S. iShares Preferred Stock ETF was down 8 bps.
Colony NorthStar Inc.’s 7.15% series I cumulative redeemable (NYSE: CLNSPrI) were losing ground, falling 14 cents to $25.53 in early dealings.
Capital One Financial Corp.’s 5.2% series G noncumulative preferreds (NYSE: COFPrG) were also weaker, sliding 8 cents to $24.65.
© 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.