Intact Financial on tap; AGNC preferreds gain; Oxford Lane ends under par

By James McCandless

San Antonio, Feb. 6 – Thursday trading in the preferred market varied, with top traders shifting in different directions.

In the primary space, Intact Financial Corp. plans to price an offering of $125 million $25-par series 9 non-cumulative class A preferred shares with a dividend of 5.4%.

Ending as the volume leader in secondary trading, REIT AGNC Investment Corp.’s new 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock gained.

Meanwhile, closed-end fund Oxford Lane Capital Corp.’s new $87.5 million 6.25% series 2027 term preferred stock ended under par on its first day.

In the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferreds were lifted.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock also trended higher.

Elsewhere, shipping company GasLog Partners LP’s 8.5% series C and 8.625% series A fixed-to-floating rate cumulative redeemable perpetual preference units cratered.

Intact preps preferreds

In the primary space, Intact Financial plans to price an offering of $125 million $25-par series 9 non-cumulative class A preferred shares with a dividend of 5.4%.

There is a $25 million greenshoe.

TD Securities Inc., BMO Capital Markets, CIBC Capital Markets, National Bank Financial, RBC Capital Markets and Scotiabank are the underwriters.

The preferreds are redeemable on or after March 31, 2025 to March, 31, 2026 at $26.00, on or after March 31, 2026 and prior to March 31, 2027 at $25.75, on or after March 31, 2027 and prior to March 31, 2028 at $25.50, on or after March 31, 2028 and prior to March 31, 2029 at $25.25 and on or after March 31, 2029 at par.

AGNC up

Ending the day as volume leader in secondary trading, real estate investment trust AGNC new 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock gained ground.

The preferreds, trading under the temporary symbol “AINGZ,” were up 2 cents to close at $25.00 on volume of about 1.7 million shares.

On Wednesday, its first trading day, the preferred ended under par.

Oxford Lane under par

Meanwhile, closed-end investment fund Oxford Lane’s new $87.5 million 6.25% series 2027 term preferred stock ended under par on its first day.

The preferreds, trading under the temporary symbol “OXCPP,” closed at $24.77 with about 1.1 million shares trading.

The deal priced on Thursday.

Capital One lifted

In the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferreds were lifted to better levels.

The preferreds (NYSE: COFPrJ) tacked on 4 cents to close at $24.86 on volume of about 810,000 shares.

On Wednesday, the preferreds lost 3 cents.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock also trended higher.

The preferreds (NYSE: WFCPrZ) improved by 7 cents to close at $25.29 with about 803,000 shares trading.

On Wednesday, the preferreds went unchanged.

GasLog dives

Elsewhere, natural gas shipping company GasLog Partners’ 8.5% series C and 8.625% series A fixed-to-floating rate cumulative redeemable perpetual preference units both cratered.

The series C preferreds (NYSE: GLOPPrC) dropped $2.35 to close at $21.75 on volume of about 589,000 shares.

The series A preferreds (NYSE: GLOPPrA) crashed $2.41 to close at $22.49 on volume of about 512,000 shares.

The preferreds sunk after the company announced early Thursday that it would cut its quarterly distribution from 56.1 cents per share to 12.5 cents per share.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index settled the session up by 0.13%, improving on a 0.01% rise from early Thursday trading.

The iShares US Preferred Stock ETF was down 1 cent to $38.15.

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