Morning Commentary: Chimera to tap market; KeyCorp up; Qwest’s $25-par notes mixed

By James McCandless

San Antonio, Sept. 13 – Chimera Investment Corp. plans to price a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 7.75% to 7.875%.

The deal was announced Thursday morning.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The preferreds are redeemable on or after Sept. 30, 2025. Prior to that, they are redeemable within 120 days of a change of control.

In secondary activity, KeyCorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock was seen rising, leading early trading.

The preferreds (NYSE: KEYPrJ) were up 1 cent to $24.90 on volume of about 48,000 shares.

Qwest Corp.’s $25-par notes were trading mixed, maintaining a heightened level of activity since the company’s Aug. 20 redemption notice for $1.34 billion in total of its 7.5% notes due 2051, two series of 7% notes due 2052 and 7.25% debentures due 2035.

Qwest’s existing 6.75% notes due 2057 (NYSE: CTDD) were up 3 cents to $24.38 with about 44,000 notes trading.

The 6.5% notes due 2056 (NYSE: CTBB) were down 5 cents to $23.94 with about 40,000 notes trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.12% in early trading after a 0.07% decline on Wednesday.

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