Morning Commentary: Preferreds start strong; Harvest’s notes list; CorEnergy edges toward par

By Stephanie N. Rotondo

Phoenix, Jan. 26 – The preferred stock market was firm as Monday trading got underway, though a trader noted that the space was on the quiet side as people “worried about New York” and a looming snowstorm.

The Wells Fargo Hybrid and Preferred Securities index was up 15 basis points at mid-morning.

In the recent deal realm, Harvest Capital Credit Corp.’s $25 million of 7% $25-par notes due 2020 started trading on the Nasdaq Global Market on Monday.

The deal priced Thursday. The ticker symbol is “HCAPL.”

A trader quoted the issue at $25.60 bid, $25.75 offered.

Keefe Bruyette & Woods Inc. and Janney Montgomery Scott LLC were the joint bookrunning managers. JMP Securities LLC and William Blair & Co. LLC were the co-managers.

Meanwhile, CorEnergy Infrastructure Trust Inc.’s $50 million offering of 7.375% series A cumulative redeemable preferred stock received a temporary symbol of “CRGYP.”

That deal also came Thursday, via Wells Fargo Securities LLC, BofA Merrill Lynch and Stifel Nicolaus & Co. Inc.

A trader pegged that issue at $24.88 bid, $24.95 offered, though another source saw the shares trading above par.

As for Bank of America Corp.’s $1 billion of 6.5% series Y noncumulative perpetual preferreds – a deal from Tuesday – a trader said “that should list this week.”

Those preferreds were trading around par early in the session.

BofA Merrill Lynch ran the books on that deal.

Looking forward, a trader said he was “not yet hearing anything” planned in the new issue pipeline.

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