Strong demand seen for Newtek baby bonds; preferreds improve; Sotherly opens for trade

By Abigail W. Adams

Portland, Me., Feb. 16 – There was “very strong retail demand” during the bookbuilding process for Newtek Business Services Corp.’s $25-par five-year fixed-rate notes, which priced after the market close Thursday with both the deal and greenshoe upsized, a market source said.

Newtek’s offering was the first and only new deal of the week, with the primary market relatively quiet amid volatility in the broader markets.

Sotherly Hotels LP’s 7.25% notes due 2021 were the only new paper to price last week. The 7.25% notes opened for trade on Nasdaq on Friday under the ticker “SOHOK.”

As the broader equity markets showed signs of improvement toward the end of the week, so too did the preferreds market. Both the Wells Fargo Hybrid & Preferred Securities Financial index and the U.S. iShares Preferred Stock ETF closed Friday with gains.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.20% and the U.S. iShares Preferred Stock ETF was up 0.38% at Friday’s close.

AGNC Investment Corp.’s depositary shares representing the company’s 7% series C fixed-to-floating rate cumulative redeemable preferred stock and GMAC Capital Trust I’s 8.125% fixed-to-floating rate trust preferred securities both saw high volume trading on Friday.

However, GMAC’s securities saw gains while AGNC’s securities saw losses.

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