Annaly Capital's new 7.5% preferreds free to trade; Magnum Hunter brings 'best-efforts' add-on

By Stephanie N. Rotondo

Phoenix, Sept. 7 - A trader said that while "a lot of things are up" in the preferred market, it was a generally muted Friday.

"With the unemployment numbers, everybody's thinking there will be a third round of [quantitative easing]," he said.

Another market source said that "for a Friday in early September, it's OK volume."

Annaly Capital Management Inc.'s $400 million offering of 7.5% series D cumulative redeemable perpetual preferreds freed from the syndicate, according to a trader. The deal priced Thursday.

Also, Magnum Hunter Resources Corp. priced its "best-efforts" add-on offering of 8% series D cumulative perpetual preferreds early Friday.

The $50.00-par preferreds were priced at $44.00 each. The company sold $52.5 million of the preferreds in the reopening.

Elsewhere in the primary, PS Business Parks Inc.'s new $200 million of 5.75% series U cumulative perpetual preferred shares were deemed the day's most actively traded security. Also on that list was JPMorgan Chase & Co.'s recent $1.1 billion issue of 5.5% series O noncumulative preferreds.

That issue listed on the New York Stock Exchange on Thursday.

Annaly frees up

After pricing late Thursday, Annaly Capital Management's 7.5% series D cumulative redeemable perpetual preferreds freed to trade Friday.

A trader saw the issue trading at $24.97 as of midafternoon. By the close, a source quoted the issue at $24.87 bid, $24.94 offered.

The New York-based company will apply to list the new series of preferreds on the NYSE under the ticker symbol "NLYPD."

Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, UBS Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint bookrunning managers.

Proceeds will be used to purchase mortgage-backed securities and for general corporate purposes.

Magnum prices add-on

Magnum Hunter Resources priced a $52.5 million add-on to its 8% series D cumulative preferreds Friday.

When the Houston-based oil and gas exploration company first announced the deal Thursday, the existing preferreds declined in response. That trend continued Friday as they (NYSE: MHRPD) dropped 20 cents to $43.90.

The company had originally said the underwriters could sell up to $250 million of the preferreds.

Barclays, MLV & Co. Inc. and Wunderlich Securities Inc. are the joint bookrunning managers.

Proceeds will be used for capital expenditures, working capital, acquisitions, the repayment or refinancing of debt, possible stock repurchases, investments in subsidiaries, a redemption of equity interests and/or general corporate purposes.

PS Business, JPMorgan busy

PS Business Parks' new 5.75% series U cumulative perpetual preferreds topped the day's most active list, according to a trader. The deal priced Wednesday.

At the close, the issue was seen up a nickel at $24.95.

Meanwhile, JPMorgan's newly listed 5.5% series O preferreds (NYSE: JPMPD) traded actively, closing up 7 cents at par.

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