Morning Commentary: Gladstone prices; OFS Capital to tap $25-par market; AGNC mixed

By James McCandless

San Antonio, Oct. 8 – The preferred market began another day on a negative path with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.12%.

In primary activity, Gladstone Capital Corp. priced a $33.75 million offering of $25-par notes due Nov. 1, 2024 with a coupon of 5.375%, according to a filing with the Securities and Exchange Commission.

There is a $5,062,500 greenshoe.

Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and B. Riley FBR, Inc. are the joint bookrunners.

The notes are redeemable on or after Nov. 1, 2021 at par.

Meanwhile, OFS Capital Corp. said it intends to offer $25-par notes.

Ladenburg Thalmann, Janney Montgomery Scott and BB&T Capital Markets are the joint bookrunners. Incapital LLC and National Securities Corp. are the lead managers.

At the top of early trading volume, real estate investment trust AGNC Investment Corp.’s 6.5% series E and 6.875% series D fixed-to-floating rate cumulative redeemable preferred stock were mixed.

The series E preferreds (Nasdaq: AGNCO) were up 3 cents to $25.15 on volume of about 61,000 shares.

The series D preferreds (Nasdaq: AGNCM) were down 9 cents to $25.15 on volume of about 27,000 shares.

Sector peer Urstadt Biddle Properties Inc.’s 5.875% series K cumulative redeemable preferreds were under water as morning trading began.

The preferreds (NYSE: UBPPrK) were declining by 5 cents to $25.30 with about 24,000 shares trading.

Meanwhile, in the finance space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds opened on the positive side.

The preferreds (NYSE: COFPrI) were up 1 cent to $25.85 on volume of about 43,000 shares.

Communications name Qwest Corp.’s 6.5% notes due 2056 were lower.

The $25-par notes (NYSE: CTBB) were off 16 cents to $24.87 with about 39,000 notes trading.

Insurance provider W.R. Berkley Corp.’s 5.75% subordinated debentures due 2056 were also seen losing ground.

The debentures (NYSE: WRBPrD) were sliding 5 cents to $25.78 on volume of about 26,000 debentures.

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