Morning Commentary: KCAP Financial prices baby bonds; Invesco adds to calendar; Eagle Point lists

By Stephanie N. Rotondo

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

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.

Proceeds will be used for general corporate purposes.

But the deal flow wasn’t done just yet. Invesco Mortgage Capital Inc. announced early in the midweek session that it was selling fixed-to-floating rate series C cumulative redeemable preferred stock.

Dividends will be fixed until Sept. 27, 2027. After that, the rate will float at Libor plus a spread.

The preferreds also become redeemable on Sept. 27, 2027 at par plus accrued dividends. The issue can also be redeemed upon a change of control.

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

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 were seen at par in early dealings.

Ladenburg Thalmann was the bookrunner. FBR Capital Markets & Co., Oppenheimer & Co. Inc. and National Securities Corp. acted as lead managers.

And, from Monday’s business, Kimco Realty Corp.’s $225 million of 5.125% class L cumulative redeemable preferreds were trading up at mid-morning, adding 7 cents to trade at $24.62.

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

The new preferreds came tight to the 5.125% to 5.25% price talk. The size of the deal was increased from $150 million.

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

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