TriplePoint Venture enters primary space to sell baby bonds; American Homes frees to trade

By Stephanie N. Rotondo

Seattle, July 11 – The preferred stock market’s new issue pipeline let another deal out of the pipe on Tuesday.

TriplePoint Venture Growth BDC Corp. sold $65 million of 5.75% $25-par notes due 2022. The deal came upsized from $55 million.

Initial price talk was 5.875%

Keefe Bruyette & Woods Inc., Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are the joint bookrunners.

Ahead of pricing, the baby bonds were seen at $24.78 bid, $24.87 offered in the gray market.

Earlier in the day, a trader said the notes were at $24.65 bid in the gray.

The notes become redeemable on July 15, 2019. The Menlo Park, Calif.-based company plans to use the proceeds to redeem its $54.6 million outstanding 6.75% fixed-rate note due 2020, plus accrued interest. Any remaining proceeds will be used to repay borrowings under a $200 million revolving credit facility.

The 6.75% notes (NYSE: TPVZ) were down 45 cents, or 1.76%, at $25.12.

Meanwhile, American Homes 4 Rent’s $115 million of 5.875% series G cumulative redeemable preferreds – a deal priced Monday – freed to trade in the afternoon, according to a trader.

Upon freeing, the issue was assigned a temporary ticker, “AMMRP.”

At the bell, the preferreds were deemed a penny weaker at $24.98. Nearly 728,000 of the shares traded, making the issue the day’s most active security.

At mid-morning, before the issue freed, a trader saw the issue quoted at $24.85 bid, $24.92 offered in the gray. That was down from a $24.95 to $24.97 context on Monday.

The deal came upsized from $100 million and priced at the tight end of the 5.875% to 6% price talk.

Wells Fargo Securities LLC, BofA Merrill Lynch and Raymond James ran the deal.

The new issues “certainly didn’t hurt” overall liquidity, a market source said, though he added that an improved Treasury market was also helping.

“We are also right in front of bank earnings,” he noted.

But while trading volume was “probably a little better,” the preferred space still ended with a weaker tone.

The Wells Fargo Hybrid and Preferred Securities index was down 22 basis points at day’s end. The U.S. iShares Preferred Stock ETF was meantime off 20 bps.

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