Invesco prices tight to talk; KCAP brings baby bonds; Eagle Point lists; Kimco firms

By Stephanie N. Rotondo

Seattle, Aug. 9 – The preferred stock market’s new issue pipeline continued to flow on Wednesday.

Invesco Mortgage Capital Inc. kept the pipe churning with its offering of $250 million of 7.5% fixed-to-floating rate series C cumulative redeemable preferred stock.

The deal came at the tight end of the revised 7.5% to 7.625% price talk. Initially, price talk was 7.625%.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and J.P. Morgan Securities LLC ran the books.

Dividends will be fixed until Sept. 27, 2027. After that, the rate will float at Libor plus 528.9 basis points.

The Atlanta-based real estate investment trust plans to use proceeds for general corporate purposes.

Late Tuesday, KCAP Financial Inc. brought a $50 million offering of 6.125% $25-par notes due 2022 via Keefe Bruyette & Woods Inc., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc.

The notes become redeemable on Sept. 30, 2019.

Among other recent deals, Eagle Point Credit Co. Inc.’s $27.5 million of 6.75% $25-par notes due 2027 – a deal priced Aug. 1 – began trading on the New York Stock Exchange under the ticker symbol “ECCY.”

The notes rose 3 cents to $25.03.

And, from Monday’s business, Kimco Realty Corp.’s $225 million of 5.125% class L cumulative redeemable preferreds were trading up, adding a nickel to finish the session at $24.60.

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