MFA Financial offering cumulative securities; Goodrich Petroleum's 10% preferreds free

By Stephanie N. Rotondo

Phoenix, April 8 - New preferred issues were starting to come out as the week began, though they were not necessarily the deals that market players were expecting.

"I thought we were going to see a bank deal today, but that's not happening," a trader said.

Instead, MFA Financial Inc. announced an offering of series B cumulative redeemable preferreds. Proceeds from the offering will be used for general corporate purposes, including a redemption of the 8.5% series A cumulative redeemable preferreds, the company said in a regulatory filing.

A market source said the deal was launched at $175 million, with price talk around 7.5%.

Late in the day, J.P. Morgan Chase & Co. announced the redemption of $5 billion in eight series of trust preferred securities, including one issue linked to the former Bank One Corp. A market source said he expected the issues to be busy come Tuesday trading.

In other redemption news, Cousins Properties Inc. announced an offering of common stock on Monday, the proceeds of which will go toward an asset sale. The company also said that the funds could be used to redeem in part its 7.75% series A cumulative redeemable preferreds.

That issue (NYSE: CUZPA) ended the day at $25.41, up a penny, though overall volume in the name was thin.

It was "not the busiest day" overall on Monday, according to a market source. "The market didn't move a lot," though it was just slightly softer.

MFA's new issue

MFA Financial said it would price an offering of series B cumulative preferreds.

A source said the deal was launched at $175 million with price talk around 7.5%. Proceeds will be used to call the company's 8.5% series A cumulative redeemable preferreds.

At midday, a trader saw the new series Bs offered at $24.62 in the gray market. After the close, a source said he had seen paper get up to $24.70.

The series As (NYSE: MFAPA) ended the day down 83 cents, or 3.17%, at $25.35.

Pricing details had not been released as of 6:15 p.m. ET.

Recent deal tidbits

Goodrich Petroleum Corp.'s newly priced 10% series C cumulative preferreds - a deal that priced Thursday - were quoted at $24.75 bid, $24.77 offered.

The issue freed to trade early in Monday's session.

In new listings, Main Street Capital Corp.'s $80 million of 6.125% $25-par notes due 2023 listed on the New York Stock Exchange under the ticker symbol "MSCA." Kayne Anderson MLP's $110 million of 3.5% series F mandatory redeemable preferreds were also admitted for trading, under the symbol "KYNPF."

Main Street's notes were trading at $24.95 versus opening levels of par. Kayne's securities were at $24.98 at midday, compared to an opening price of $25.20.

Kayne's preferreds closed at par.

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