Chimera taps market; Land O’Lakes preps offering; American Homes, Seaspan under par

By James McCandless

San Antonio, Sept. 13 – The preferred market was dominated by new issues on Thursday.

Chimera Investment Corp. priced an upsized $250 million of $25-par 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock.

Meanwhile, Land O’Lakes Inc. was expected to sell $200 million of series C cumulative redeemable preferred stock.

In the secondary market, American Homes 4 Rent’s new $100 million of 6.25% series H cumulative perpetual preferreds ended below par.

Seaspan Corp.’s new $150 million of 8% series I fixed-to-floating rate cumulative redeemable perpetual preferred shares also traded under par.

And Annaly Capital Management Corp.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferred stock declined.

Chimera prices

Chimera priced an upsized $250 million of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 7.75%.

The deal was announced Thursday morning at an initial size of $100 million and came in at the tight end of talk for a dividend between 7.75% and 7.875%.

There is a $37.5 million greenshoe.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners. J.P. Morgan Securities LLC is a lead manager.

Land O’Lakes on tap

Land O’Lakes meanwhile reportedly plans to price a $200 million offering of series C cumulative redeemable preferred shares.

The company plans to use the proceeds to pay down outstanding balances under the company’s revolving credit facility and, to the extent net proceeds remain, for the paydown of the receivables securitization facility or for general corporate purposes.

Some details of the offering were disclosed by ratings agencies, with both S&P Global Ratings and Fitch Ratings assigning a BB rating to the preferreds.

American Homes below par

On its first day on the market, American Homes’ new $100 million of 6.25% series H cumulative perpetual preferreds ended the day below par, leading trading.

The preferreds, trading under the temporary symbol “AMHRP,” were seen ending at $24.93 on volume of about 1.7 million shares.

The deal priced Sept. 12.

Seaspan also under par

Also trading for the first day, Seaspan’s new $150 million of series I fixed-to-floating rate cumulative redeemable perpetual preferreds also traded under par.

The preferreds, trading under the temporary symbol “SSWPP,” ended at $24.75 with about 987,000 shares trading.

Annaly Capital lower

Annaly Capital’s 6.95% series F fixed-to-floating rate cumulative redeemable preferred stock declined in secondary trading.

The preferreds (NYSE: NLYPrF) were down 16 cents to close at $25.35 on volume of about 287,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.01% at market close after rising 0.12% in early trading on Thursday.

The iShares US Preferred Stock ETF was down 3 cents to $37.27.

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