Morning Commentary: Deals ahead from Capital One, Customers Bancorp; Gladstone, Costamare trade

By Christine Van Dusen

Atlanta, May 11 – Capital One Financial Corp. and Customers Bancorp Inc. took steps toward new deals on Monday while investors in the preferred stock market paid attention to recent issues from Gladstone Investment Corp. and Costamare Inc.

Gladstone’s $35 million 6.5% series C cumulative term preferreds due 2022 – which freed from the syndicate on Friday and were seen that day at $24.75 bid, par offered – traded Monday morning between $24.75 and $25.00, a trader said.

Janney Montgomery Scott LLC was the bookrunner. Co-lead managers included J.J.B. Hilliard, W.L. Lyons, LLC, Wunderlich Securities, William Blair & Co. and Ladenburg Thalmann.

And Costamare’s $100 million of 8.75% series D cumulative redeemable preferreds (NYSE: COZTF) traded Monday at $24.70 bid after a previous level of $24.65 bid, $24.72 offered.

Morgan Stanley & Co. LLC, UBS Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. facilitated that deal.

For its upcoming deal, Capital One Financial set talk at 5.75% for a new issue of fixed-to-floating rate non-cumulative perpetual preferred stock, series E, a trader said.

The notes will come to the market with a liquidation preference of $1,000 per share, according to a company filing.

Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Capital One Securities are leading the Securities and Exchange Commission-registered issue.

The proceeds will be used for general corporate purposes, which may include the repayment of debt, acquisitions, additions to working capital, capital expenditures and investments in subsidiaries.

The financial services company is based in McLean, Va.

And Wyomissing, Pa.-based Customers Bancorp is looking to issue fixed-to-floating preferred stock in the 7.25% area, a trader said.

Other details were not immediately available on Monday.

In other trading of preferreds on Monday morning, RBS Capital Funding Trust VII’s 6.08% noncumulative guaranteed trust preferred securities opened up 21 cents on Monday to $24.87 on 263,153 shares traded.

Barclays Bank plc’s 8.125% noncumulative callable dollar preference shares, series 5 ADR, moved up 11 cents to $26.00 on 169,264 shares traded.

And Royal Bank of Scotland’s 7.25% noncumulative dollar preference shares, series T ADR, ticked up 5 cents to trade at $25.33 on 161,909 shares traded.

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