Morning Commentary: Recently priced deals trade in the gray, but not yet free; AGNC, Arch firm

By Stephanie N. Rotondo

Seattle, Aug. 17 – Wednesday’s round of new preferred stock issues had not yet freed to trade come early Thursday dealings, according to a trader.

However, the issues were trading around in the gray market.

For instance, Ashford Hospitality Trust Inc.’s $85 million of 7.5% series H cumulative preferreds were pegged at $24.68 bid, $24.75 offered at mid-morning.

Initial price talk was in a range of 7.5% to 7.625%.

The deal came upsized from $50 million

UBS Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

Cedar Realty Trust Inc.’s $75 million of 6.5% series C cumulative redeemable preferreds were meantime seen at $24.83 bid, $24.90 offered.

Price talk was 6.375% to 6.5%, according to a market source.

Raymond James & Associates Inc. and KeyBanc Capital Markets are running the books.

And, Stellus Capital Investment Corp.’s $42.5 million of 5.75% $25-par notes due 2022 were in a $24.65 to $24.75 context.

The deal came in line with price talk but was upsized from $30 million.

Keefe Bruyette & Woods Inc. is the bookrunner.

From Tuesday’s business, AGNC Investment Corp.’s $300 million of 7% series C fixed-to-floating rate cumulative redeemable preferred stock was ticking up 9 cents in early trading, moving up to $24.94.

Arch Capital Group Ltd.’s $200 million of 5.45% series F noncumulative preferreds – a deal from Monday – were also better, edging up 3 cents to $24.88.

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