Preferred primary quiet ahead of bank earnings; Two Harbors frees; TriplePoint tops par

By Stephanie N. Rotondo

Seattle, July 13 – With bank earnings just one day away, the preferred stock market was slowing back down on Thursday.

No new issues were announced, though the pipeline had been steady all week.

Additionally, the market had a mixed tone in early dealings but eventually ended lower.

“Treasuries did much worse,” a market source said. “So relatively speaking we did better.”

He also noted that the better-than-Treasuries performance came amid limited volume, given bank earnings start on Friday.

Among recent deals, Two Harbors Investment Corp.’s $250 million of 7.625% series B fixed-to-floating rate cumulative redeemable preferreds freed to trade on Thursday.

The deal priced Wednesday, coming upsized from $75 million and tighter than the 7.75% initial price talk.

The deal did well for the day, trading up to $25.27.

The issue was also assigned a temporary ticker, “TWHBP.”

Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and Keefe Bruyette & Woods Inc. ran the books.

As for TriplePoint Venture Growth BDC Corp.’s $65 million of 5.75% $25-par notes due 2022, the paper moved above par, closing at $25.03, according to a market source.

The notes priced Tuesday via Keefe Bruyette & Woods, Morgan Stanley and Deutsche Bank Securities Inc.

And, American Homes 4 Rent’s $115 million of 5.875% series G cumulative redeemable preferreds – a deal priced Monday – were rebounding from the midweek low, adding 4 cents to trade at par.

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