Morning Commentary: Ready Capital in pipeline; Bank of America, U.S. Bancorp gain

By Cristal Cody

Tupelo, Miss., July 17 – Ready Capital Corp. is marketing a new offering of $25-par seven-year senior notes on Wednesday.

Preferred stocks opened the day mostly better after heading out mixed in the previous session.

The Wells Fargo Hybrid and Preferred Securities index moved up 0.11% in mid-morning trading after ending Tuesday mostly flat.

The U.S. iShares Preferred Stock ETF gained 6 cents, or 0.16%, to $37.08 in early trading after softening 1 cent in the previous session.

Bank and financial companies are in focus this week on the release of second-quarter earnings reports.

Bank of America Corp.’s preferred stocks were up 3 cents to 6 cents in trading over the morning after the company reported earnings beat analysts’ forecasts. Bank of America’s 5.875% series HH non-cumulative preferred shares rose 6 cents, or 0.24%, to $26.39 on about 69,000 shares traded.

U.S. Bancorp’s preferred shares were mostly flat to about 6 cents better after the company posted stronger earnings results on Wednesday.

U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock (NYSE: USBPrP) improved 2 cents, or 0.09%, to $26.27 on trading volume of about 41,000 shares.

Ready Capital on tap

Ready Capital plans to price an offering of $25-par senior notes due 2026, according to a 424B3 filing with the Securities and Exchange Commission on Wednesday.

Sandler O’Neill + Partners, LP and B. Riley FBR, Inc. are the bookrunners.

The notes are callable on or after 2022 and before 2025 at 101. The notes are callable at par on or after 2025.

The issue has a 101% change-of-control put.

The company plans to apply to list the notes on the New York Stock Exchange under the symbol “RCB” for trading within 30 days after issuance.

Ready Capital is a New York-based real estate investment trust finance company.

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