Morning Commentary: Annaly plans deal; preferred stocks improve; Seritage, Arch Capital gain

By Cristal Cody

Tupelo, Miss., Jan. 8 – Annaly Capital Management, Inc. announced plans on Monday to price series G fixed-to-floating rate perpetual cumulative redeemable preferred stock.

The liquidation preference is $25.00 per share, according to a 424B5 filing with the Securities and Exchange Commission.

The offering is the first new preferred stock deal of 2018.

Preferred stocks opened the week modestly better.

Early Monday, the Wells Fargo Hybrid and Preferred Securities index rose 3 basis points.

The U.S. iShares Preferred Stock ETF also was up 3 bps.

Looking at trading in new issues, Seritage Growth Properties’ 7% series A cumulative redeemable perpetual preferred stock (NYSE: SRGPrA) improved 9 cents, or 0.37%, to $24.49 over the morning.

The real estate investment trust formed by Hoffman Estates, Ill.-based Sears Holdings sold $70 million, or 2.8 million shares, of the $25-par preferreds on Dec. 7.

Also, Arch Capital Ltd.’s reopened depositary shares that represent a 1/1,000th interest in its 5.45% series F non-cumulative perpetual preferred shares (Nasdaq: ACGLO) gained 17 cents, or 0.68%, to $25.25 in early trading.

The company priced a $100 million, or 4 million share, add-on to the issue on Nov. 29 at $25.16 per depositary share. The shares have a liquidation preference of $25.00 per depositary share.

The Hamilton, Bermuda insurance, reinsurance and mortgage insurance provider originally issued $230 million of the securities on Aug. 17. The total outstanding now is $330 million.

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