Preferreds primary active; Ashford Hospitality Trust, MVP price; preferreds close flat

By Cristal Cody

Tupelo, Miss., Nov. 8 – Preferred pricing action is picking up, while preferred stocks overall were mostly flat on Wednesday.

During the session, Ashford Hospitality Trust Inc. priced $135 million of perpetual cumulative preferred shares.

MVC Capital Inc. sold $100 million of “baby bonds” due Nov. 30, 2022 (Egan-Jones: BBB-) at par to yield 6.25%, a source said.

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

Looking ahead, DCP Midstream, LP plans to sell series A fixed-to-floating rate cumulative redeemable perpetual preferred units (B/), according to a prospectus filed with the Securities and Exchange Commission.

In other pricing action, SunTrust Banks, Inc. sold $500 million of depositary shares representing a 1/100th interest in a share of series H fixed-to-floating rate perpetual preferred stock on Tuesday.

The series H preferreds have a fixed-rate dividend of 5.125% to but excluding Dec. 15, 2027. Thereafter until the redemption date, if any, the rate will convert to a floating rate of Libor plus 278.6 basis points.

SunTrust Banks’ preferreds traded on Wednesday at 100.125, a source said.

Preferreds recovered some of the early morning losses over the day.

The Wells Fargo Hybrid and Preferred Securities index closed up 2 basis points. The index was down 9 bps at the start of the session.

The U.S. iShares Preferred Stock ETF rose 18 bps on the day. The ETF was 12 bps better early Wednesday.

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