Invesco funds tap market; Synovus’ new issue leads; First Republic Bank improves

By James McCandless

San Antonio, June 14 – Volume in the preferred space largely centered on newer issues as the market saw another active day.

Invesco Advisers, Inc. said that two of its funds privately placed $250 million of variable-rate demand preferred shares.

Chicken Soup for the Soul Entertainment, Inc. launched a public offering of $25 million series A cumulative redeemable perpetual preferred stock on Wednesday.

Synovus Financial Corp.’s new $200 million $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock led volume for another day.

First Republic Bank’s recent series I noncumulative perpetual preferred stock continues to move back up the ladder.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock rose.

Invesco funds’ new issues

Invesco Advisors said that Invesco Senior Income Trust and Invesco Dynamic Credit Opportunities Fund privately placed $250 million of variable-rate demand preferred shares.

Invesco Senior Income Trust issued $125 million of the preferreds, and Invesco Dynamic Credit Opportunities Fund issued $125 million of the preferreds (see related story elsewhere in this issue).

Chicken Soup launches

Chicken Soup for the Soul launched a $25 million public offering for $25-par series A cumulative redeemable perpetual preferred stock on Wednesday.

Ladenburg Thalmann & Co. Inc. is bookrunning manager for the offering, which carries a greenshoe of $3.75 million, or 150,000 shares.

The company plans to use proceeds for accretive merger and acquisition opportunities and general corporate purposes.

Synovus takes off

Synovus’ new $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock took top position in volume on its second day in the market with about 932,000 shares trading.

The deal, announced Tuesday morning, was upsized from $150 million and came in below dividend talk of 6.375% and 6.5%.

The preferreds, which trade under the temporary ticker “SYNVP,” were up 29 cents to $25.89.

First Republic gains

First Republic’s recent $300 million series I noncumulative perpetual preferred stock saw more attention on Thursday with about 437,000 shares exchanged.

The preferreds (NYSE: FRCPrI) were up 12 cents to $24.87.

Bank of America up

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock gained with about 364,000 shares trading.

The preferreds (NYSE: BACPrB) were up 5 cents to $25.78.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed up 0.02%, hovering around the 0.03% gain in early trading on Thursday.

The iShares US Preferred Stock ETF was up 9 cents to close at $37.53.

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