Week’s new issues trade well, bucking day’s downward trend; Kimco’s recent deal lists

By Stephanie N. Rotondo

Seattle, Aug. 17 – New preferred stock issues priced over the last few sessions continued to dominate trading on Thursday.

Additionally, the recently priced issues were gaining strength, even as the secondary space was in retreat.

Ashford Hospitality Trust Inc.’s $85 million of 7.5% series H cumulative preferreds were seen ending the day at $24.80, a gain of 22 cents.

That compared to quotes of $24.68 bid, $24.75 offered at mid-morning.

Over 1.56 million of the preferreds changed hands during the session.

The issue freed to trade around midday, getting a temporary ticker symbol of “AHHSP.”

The company brought the issue on Wednesday. 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 – another deal priced Wednesday – were meantime deemed unchanged at $24.85, on about 782,000 shares traded.

The preferreds were pegged at $24.83 bid, $24.90 offered earlier in the day.

Like Ashford, the paper freed from the syndicate. The temporary ticker is “CDRYP.”

Price talk was 6.375% to 6.5%.

Raymond James & Associates Inc. and KeyBanc Capital Markets ran 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.

It was unclear if the notes freed from the syndicate.

The deal came Wednesday 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 firmed a dime to $24.95.

Over 1.8 million of the preferreds changed hands.

The issue has a temporary symbol, “AGNNP.”

Arch Capital Group Ltd.’s $200 million of 5.45% series F noncumulative preferreds – a deal from Monday – were also better, edging up a nickel to $24.90 on almost 445,000 shares traded.

That issue’s temporary symbol is “AHCCF.”

As for deals from earlier in the month, Kimco Realty Corp.’s $225 million of 5.125% class L cumulative redeemable preferred stock listed on the New York Stock Exchange on Thursday.

The ticker symbol is “KIMPrL.”

The preferreds finished the day at $24.80, up a dime.

The deal came Aug. 7 at the tight end of the 5.125% to 5.25% price talk. It was also increased from $150 million.

BofA Merrill Lynch, Morgan Stanley, J.P. Morgan Securities LLC, RBC Capital Markets LLC, UBS Securities and Wells Fargo Securities LLC are the joint bookrunners.

For its part, the secondary market had a negative tone for the day, following its straight equity counterparts lower on concerns about the current White House administration.

The Wells Fargo Hybrid and Preferred Securities index was down 20 basis points. The U.S. iShares Preferred Stock ETF declined 44 bps.

© 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.