FAT Brands preps preferreds; Deutsche Bank heads lower; Two Harbors Investment jumps

By James McCandless

San Antonio, June 3 – Despite an overall positive trend in the preferred space, volume leaders mostly declined.

FAT Brands Inc. plans to price an offering of $30 million series B non-convertible preferred stock with a dividend of 8.25%.

Leading secondary trading volume, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities and its Deutsche Bank Contingent Capital Trust II 6.55% trust preferred securities were both negative.

Two Harbors Investment Corp.’s 7.625% series B fixed-to-floating rate cumulative redeemable preferred stock saw a boost.

Meanwhile, in communications, Qwest Corp.’s 6.5% notes due 2056 were trailing by end of the session.

In oil and gas, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were also moving lower.

Utilities name Spire Inc.’s 5.9% series A cumulative redeemable perpetual preferreds ended the day slightly negative.

FAT Brands’ deal

FAT Brands plans to price an offering of $30 million series B non-convertible preferred stock with a dividend of 8.25%.

The preferreds are part of a best-efforts offering that also includes common stock purchase warrants.

TriPoint Global Equities, LLC is the bookrunner.

Digital Offering, LLC is the co-manager.

Each preferred share will come with a warrant to purchase 0.60 of a share of common stock at an exercise price of $8.50 per share.

The preferreds are redeemable one year after issuance at 110%, two years after issuance at 105% and three years after issuance at par.

Deutsche Bank down

Leading trading volume, Deutsche Bank’s 8.05% trust preferred securities and its 6.55% trust preferred securities were both negative.

The 8.05% preferreds (NYSE: DKT) were down 19 cents to close at $25.35 on volume of about 351,000 shares.

The 6.55% preferreds (NYSE: DXB) were off 13 cents to close at $24.14 on volume of about 158,000 shares.

Two Harbors gains

Elsewhere, real estate investment trust Two Harbors’ 7.625% series B fixed-to-floating rate cumulative redeemable preferred stock saw a boost in Monday activity.

The preferreds (NYSE: TWOPrB) gained 29 cents to close at $25.66 with about 182,000 shares trading.

Qwest trails

Meanwhile, in the communications space, Qwest’s 6.5% notes due 2056 were also trailing by session’s end.

The notes (NYSE: CTBB) fell 20 cents to close at $22.79 on volume of about 145,000 notes.

On Friday, the notes picked up 20 cents.

Energy Transfer lower

In oil and gas, Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were headed lower.

The preferreds (NYSE: ETPPrE) dropped 26 cents to close at $24.40 with about 145,000 shares trading.

On Friday, the preferreds gained 2 cents.

Spire negative

Utilities name Spire’s 5.9% series A cumulative redeemable perpetual preferreds ended the day slightly negative.

The preferreds (NYSE: SRPrA) were down 2 cents to close at $25.86 on volume of about 141,000 shares.

On Friday, the preferreds dipped 2 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.22% at the close, improving on the 0.15% rise in early Monday trading.

The iShares US Preferred Stock ETF was up 16 cents to $36.37.

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