AGNC to offer preferreds; Air Lease’s new preferreds above par; National General gains

By James McCandless

San Antonio, Feb. 27 – Rumblings in the primary preferred market accented a positive day in secondary activity.

AGNC Investment Corp. plans to price an offering of $25-par series D fixed-to-floating rate cumulative redeemable preferred stock.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunning managers.

The preferreds are redeemable on or after April 15, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event.

The dividend is fixed until April 15, 2024, then converts to a floating rate of Libor plus a spread.

In its first trading day, Air Lease Corp.’s new $250 million 6.15% series A fixed-to-floating rate non-cumulative perpetual preferred stock closed above par.

The preferreds, trading under the temporary symbol “ALSCP,” were spotted closing at $25.23 on volume of about 2 million shares.

Elsewhere, insurer National General Holdings Corp.’s 7.5% series C non-cumulative preferred stock saw a boost.

The preferreds (Nasdaq: NGHCN) picked up 47 cents to close at $21.45 with about 906,000 shares trading.

In the finance space, People’s United Financial, Inc.’s 5.625% series A fixed-to-floating rate non-cumulative perpetual preferreds were also positive.

The preferreds (Nasdaq: PBCTP) gained 2 cents to close at $24.09.

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