Kimco’s deal frees to trade; KCAP on tap; Annaly active; Fannie slips, then recovers

By Stephanie N. Rotondo

Seattle, Aug. 8 – Preferred stock investors continued to focus on new and recent deals in Tuesday trading.

For instance, Kimco Realty Corp.’s $225 million of 5.125% class L cumulative redeemable preferreds – a deal that priced on Monday – were seen at closing at $24.55, off 3 cents from the previous day.

The issue freed to trade early in the day, trading under the temporary ticker “KIMRP.”

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

Annaly Capital Management Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds (NYSE: NLYPrF) – a deal from July 25 – meantime remained actively traded. But the preferreds were losing a little bit of the ground earned on Monday, slipping 4 cents to $24.99.

Monday’s move above par marked the first time the issue had breached that threshold.

Looking ahead, KCAP Financial Inc. added a deal to the calendar early in the session, a $50 million offering of $25-par notes due 2022.

Keefe Bruyette & Woods Inc., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. are running the deal.

Away from new and recent deals, Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were initially weaker but ended the day a touch higher.

The preferreds closed at $7.05, up 3 cents. The issue was off 8 cents, or 1.14%, at $6.94 at mid-morning.

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