AGNC, Urstadt Biddle tap $25-par market; Gladstone above par; Capital One lower

By James McCandless

San Antonio, Sept. 26 – The preferred space saw mixed activity on Thursday with individual names taking different tracks.

In primary activity, AGNC Investment Corp. priced a $350 million offering of $25-par series E fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.5%.

Urstadt Biddle Properties Inc. priced a $100 million offering of $25-par series K cumulative redeemable preferred stock at par with a dividend of 5.875%.

As the volume leader, real estate investment trust Gladstone Commercial Corp.’s new $60 million 6.625% series E cumulative redeemable preferred stock closed above par.

Sector peer Annaly Capital Management, Inc.’s 6.75% series I fixed-to-floating rate cumulative redeemable preferreds saw a drop.

Meanwhile, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock also ended lower.

Also in finance, Bank of America Corp.’s 5% series LL non-cumulative preferred stock spent the session improving.

Retirement name Athene Holding Ltd.’s 5.625% series B fixed-rate perpetual non-cumulative preference shares shot up.

AGNC’s deal

In primary activity, AGNC priced a $350 million offering of $25-par series E fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.5%.

There is a $52.5 million greenshoe.

The deal was announced Thursday morning.

Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Goldman Sachs & Co. LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until Oct. 15, 2024, then converts to a floating rate of Libor plus 499.3 basis points.

The preferreds are redeemable on or after Oct. 15, 2024. Prior to that, the preferreds are redeemable within 120 days after a change-of-control event.

Urstadt Biddle prices

Urstadt Biddle priced a $100 million offering of $25-par series K cumulative redeemable preferred stock at par with a dividend of 5.875%.

There is a $15 million greenshoe.

The deal was announced on Thursday morning.

Wells Fargo Securities, LLC and BMO Capital Markets Corp. are the joint bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 120 days after a change-of-control event.

Gladstone above par

As the volume leader on its first trading day, real estate investment trust Gladstone Commercial’s new $60 million 6.625% series E cumulative redeemable preferred stock closed above par.

The preferreds, trading under the temporary symbol “GLSDP,” were seen closing at $25.15 on volume of about 931,000 shares.

The deal priced late Wednesday.

Sector peer Annaly Capital’s 6.75% series I fixed-to-floating rate cumulative redeemable preferreds saw a drop at the end of the day.

The preferreds (NYSE: NLYPrI) dropped 25 cents to close at $25.97 with about 234,000 shares trading.

Capital One lower

Meanwhile, in the finance space, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock also ended in a lower position.

The preferreds (NYSE: COFPrI) lost 3 cents to close at $24.90 on volume of about 897,000 shares.

On Wednesday, the preferreds rose 3 cents.

Also in finance, Bank of America’s 5% series LL non-cumulative preferred stock spent the Thursday session improving.

The preferreds (NYSE: BACPrN) added 6 cents to close at $25.36 with about 648,000 shares trading.

On Wednesday, the preferreds moved up 11 cents.

Athene improves

Retirement services provider Athene’s 5.625% series B fixed-rate perpetual non-cumulative preference shares shot up during trading.

The preferreds (NYSE: ATHPrB) gained 13 cents to close at $25.87 on volume of about 276,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index dipped 0.09% by the close, increasing on the 0.06% loss from early Thursday trading.

The iShares US Preferred Stock ETF was up 4 cents to $37.46.

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