Dynex Capital prices; CloudCommerce on tap; AT&T preferreds under par

By James McCandless

San Antonio, Feb. 13 – The Thursday preferred session was a mixed bag, focusing on newer issuance.

In the afternoon, Dynex Capital, Inc. priced a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock at par with an initial dividend of 6.9%.

Also, CloudCommerce, Inc. announced plans to price an offering of up to $20 million series F preferred stock with a dividend of 10%.

Secondary trading saw telecom company AT&T, Inc.’s new $1.75 billion 4.75% series C perpetual preferred stock finish under par on its first day.

The company’s 5% series A cumulative perpetual preferred stock also saw attention but went unchanged.

Meanwhile, REIT AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock also experienced rigidity.

Sector peer New Residential Investment Corp.’s new 6.375% series C fixed-to-floating rate cumulative redeemable preferreds declined.

Elsewhere, in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock inched higher.

Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock ended flat, erasing any gains made during the session.

Dynex prices

In afternoon primary activity, Dynex Capital priced a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock at par with an initial dividend of 6.9%.

There is a $15 million greenshoe.

The deal was announced Thursday morning.

J.P. Morgan Securities LLC, RBC Capital Markets LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until April 15, 2025, then converts to a floating rate of Libor plus 546.1 bps.

The preferreds are redeemable on or after April 15, 2025. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

CloudCommerce on tap

Late in the day in primary activity, CloudCommerce announced plans to price an offering of up to $20 million series F preferred stock with a dividend of 10%.

Dalmore Group, LLC is the broker-dealer.

Dividends will be payable monthly.

The preferreds are redeemable after one year.

AT&T below par

Secondary trading saw telecom company AT&T’s new $1.75 billion 4.75% series C perpetual preferred stock finish under par on its first day.

The preferreds, trading under the temporary symbol “ATTXL,” closed at $24.95 on volume of about 18.3 million shares.

The company’s established 5% series A cumulative perpetual preferred stock also saw attention but went unchanged by the close.

The preferreds (NYSE:TPrA) ended level at $25.97 on volume of about 849,000 shares.

On Wednesday, the preferreds sunk 43 cents.

AGNC rigid

Meanwhile, real estate investment trust AGNC’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock also experienced rigidity.

The preferreds (Nasdaq: AGNCP) finished where it started at $24.89 with about 915,000 shares trading.

On Wednesday, the preferreds declined by 4 cents.

Sector peer New Residential’s new 6.375% series C fixed-to-floating rate cumulative redeemable preferreds declined.

The preferreds, trading under the temporary symbol “NRESP,” fell 7 cents to close at $24.83 on volume of about 831,000 shares.

On Wednesday, its first day, the preferreds closed below par.

Capital One up

Elsewhere, in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock inched higher.

The preferreds (NYSE: COFPrJ) tacked on 1 cent to close at $24.96 with about 525,000 shares trading.

On Wednesday, the preferreds lost 5 cents.

Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock ended flat, erasing any gains made during the session.

The preferreds (NYSE: WFCPrZ) remained level at $25.47 on volume of about 435,000 shares trading.

On Wednesday, the preferreds shaved off 8 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day up by 0.10%, improving on the 0.08% rise from early Thursday trading.

The iShares US Preferred Stock ETF was down 3 cents to $38.20.

© 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.