Ready Capital sells $50 million $25-par notes; financials, preferreds mostly improve

By Cristal Cody

Tupelo, Miss., July 18 – Ready Capital Corp. tapped the preferred stock market on Thursday with a $50 million offering of $25-par seven-year investment-grade senior notes.

Ready Capital’s existing 6.5% senior notes due April 30, 2021 (NYSE: RCP) closed up 11 cents, or 0.43%, higher, at $25.84 on about 3,000 notes traded. The notes opened the day 2 cents higher after ending Wednesday up 19 cents.

Bank and financial preferred stocks are trading mostly better on the heels of second-quarter earnings reports.

Morgan Stanley’s preferred stocks traded flat to about 26 cents higher after the company reported better-than-expected earnings results before the market opened Thursday.

The series A preferreds (NYSE: MSPrA) were up 14 cents, or 0.66%, to $21.31 early trading before closing the day 25 cents, or 1.18%, better at $21.42. Trading volume averaged 88,000 shares.

The company’s series E preferreds (NYSE: MSPrE) closed the day unchanged at $28.47 on about 53,000 average shares traded.

The series E preferreds were up 8 cents, or 0.28%, in early trading.

In other sector trading, Bank of America Corp.’s preferreds headed out mixed following’s the company’s second-quarter report on Wednesday.

Bank of America’s 5.875% series HH non-cumulative preferred shares (NYSE: BACPrK) fell 2 cents, or 0.08%, to $26.39 on about 71,000 average shares traded.

The series HH preferred shares were up 2 cents at the start of the day after closing 8 cents better on Wednesday.

Preferred stocks overall saw gains in early trading and continued to improve over Thursday’s session.

The Wells Fargo Hybrid and Preferred Securities index rose 0.35% at the start of the session and closed the day better by 0.37%. The index finished Wednesday up 0.34%.

The U.S. iShares Preferred Stock ETF gained 5 cents, or 0.13%, on the day to head out at $37.20. The ETF moved up 3 cents, or 0.08%, in early trading after closing up 13 cents in the previous session.

Ready Capital prices

Ready Capital sold $50 million of 6.2% $25-par senior notes due July 30, 2026 (Egan-Jones: BBB) on Thursday, according to an FWP filing with the Securities and Exchange Commission.

Sandler O’Neill + Partners, LP and B. Riley FBR, Inc. were the bookrunners.

The deal includes an over-allotment option of $7.5 million.

Ready Capital plans to apply to list the notes on the New York Stock Exchange under the symbol “RCB” for trading within 30 days after issuance.

The real estate investment trust finance company is based in New York.

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