Triangle Capital to price $50 million of $25-par notes; RBS preferreds trade up after earnings

By Andrea Heisinger

New York, Feb. 23 - The preferred stock market was mostly quiet on Thursday as plans for a new deal were announced by Triangle Capital Corp.

Triangle announced in a filing with the Securities and Exchange Commission that it will price a minimum of $50 million of seven-year $25-par notes.

"It's not a big enough deal to hear much about it," a source said in early afternoon.

On the secondary side of the market, there was "not much happening," a source said. "Everything's up marginally, but there's really not much going on."

Later in the day, a trader pegged volume at "light to moderate" and said the preferred market overall was trading up 34 basis points on the day, equating to about 8 cents.

Other news in the market came from Strategic Hotels & Resorts Inc., which declared a first-quarter dividend on its 8.5% series A cumulative preferreds, 8.25% series B cumulative preferreds and 8.25% series C cumulative preferreds now that a tender offer is over. The announcement was made along with fourth-quarter earnings in a press release on Thursday.

The dividend will be paid on June 29 to holders of record as of June 15.

"Their old stuff is up about 90 cents overall," a trader said.

Outstanding preferreds from Royal Bank of Scotland plc were seen trading at the highest volume in the market after the financial reported earnings, a trader said.

"They're trading at a higher volume than usual," he said. "They had a disproportionate share of the market."

Triangle's small deal

Triangle Capital is selling at least $50 million, or 2 million, of $25-par fixed-rate senior notes due March 15, 2019, the company said in a prospectus filed with the SEC.

Talk is at about 7%, a market source said. The source added that because the offering was launched Thursday, it will likely price late on Friday.

"I can't imagine they would let it go over the weekend," the source said.

The underwriters will have a $7.5 million over-allotment option.

Interest is payable on the 15th day of March, June, September and December.

The notes can be redeemed, at the company's option, at any time after March 15, 2015 at par plus accrued interest.

Triangle intends to list the notes on the New York Stock Exchange under the ticker symbol "TCC."

Stifel Nicolaus & Co. Inc., BB&T Capital Markets, Janney Montgomery Scott LLC & Sterne Agee are the joint bookrunners.

Robert W. Baird & Co. Inc. is the lead manager, and J.J.B. Hilliard, W.L. Lyons LLC, Ladenburg Thalmann & Co. Inc. and Wunderlich Securities are the co-managers.

Triangle Capital is a specialty finance company that provides customized financing solutions to lower middle market companies. The company is based in Raleigh, N.C.

RBS trades at high volume

The top two preferreds by volume for the day came from RBS, a market source said.

The bank's outstanding series G preferreds saw 2.45 million shares change hands, moving up 14 cents on the day to close at $13.17. RBS' series T preferreds had 540,000 traded and closed up 30 cents at $18.45.

Entergy Texas Inc. came in third behind RBS. Its preferreds closed down 11 cents at $28.92 after 406,000 of them changed hands.

Bank of America Corp.'s series I preferreds saw 391,000 shares trade and ended up 9 cents at $22.04.

Investors traded 390,000 of Ally Financial, Inc.'s series B preferreds. They closed at $21.95, down 6 cents on the day.

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