Morning Commentary: DPW, AllianzGI fund tap market; Capital Southwest offering eyed

By James McCandless

San Antonio, Sept. 14 – DPW Holdings, Inc. priced a $25 million face amount of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 10% at a discount of $23.50, the company disclosed in a filing with the Securities and Exchange Commission.

There is no greenshoe.

The preferreds are redeemable on or after Sept. 30, 2023 at par. Prior to that, they are redeemable within 120 days upon the occurrence of a change of control.

In other primary activity, AllianzGI Convertible & Income Fund sold a $100 million offering of $25-par series A cumulative preferred shares with a dividend of 5.625%.

There is no greenshoe.

Wells Fargo Securities LLC, UBS Investment Bank and Morgan Stanley & Co. are the joint bookrunners.

The preferreds are redeemable after five years.

Meanwhile, Capital Southwest Corp. said it has entered into an agreement to sell up to $50 million more of its $25-par 5.95% notes due Dec. 15, 2022.

The at-the-market sales agreement lists B. Riley FBR as the distributor.

Sales will be by means of ordinary brokers’ transactions, at prices related to prevailing market prices or at negotiated prices.

The company has previously issued $57.5 million of the notes in two earlier transactions in 2017. The new notes will be fungible with the earlier issuances.

In secondary trading, Seaspan Corp.’s new $150 million of 8% series I fixed-to-floating rate cumulative redeemable perpetual preferred shares were flat despite active trading.

The preferreds, trading under the temporary symbol “SSWPP,” were level at $24.75 on volume of about 161,000 shares trading.

Qwest Corp.’s $25-par notes were seen declining in early trading. The notes have been active since the company’s Aug. 20 redemption notice for $1.34 billion in total of its 7.5% notes due 2051, two series of 7% notes due 2052 and 7.25% debentures due 2035.

Qwest’s 6.5% notes due 2056 (NYSE: CTBB) was down 11 cents at $23.70 with about 68,000 notes trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.23% in early trading after a 0.01% increase on Thursday.

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