Preferreds trade mixed; new TriplePoint ticks touch lower; Magnum Hunter under pressure

By Christine Van Dusen and Stephanie N. Rotondo

Atlanta, Aug. 7 – Preferred stocks were mixed in trading on Friday on the news that the United States added 215,000 jobs in July, a boost that increases the possibility of a rate hike from the Federal Reserve next month.

“The jobs numbers are good, so long bonds are bouncing back a couple,” a trader said. “Our stuff has been pretty quiet.”

The new issue of $1.25 billion 5.95% $1,000-par series Q fixed-to-floating rate noncumulative preferred stock that Citigroup Inc. priced on Wednesday was trading Friday between 99¾ and 99 7/8, a trader said.

Citigroup Global Markets Inc. was the bookrunner for the preferreds.

Dividends will be fixed and payable semiannually through Aug. 15, 2020. After that date, the dividend floats at Libor plus 409.5 basis points and will be payable quarterly.

And the recent issue of preferred stock from Magnum Hunter Resources Corp. – $52.5 million 8% series D cumulative perpetual preferreds sold at $44.00 per share – came under pressure after the company released better-than-expected but still lower earnings. The preferreds have a $50.00 liquidation preference.

In other news, TriplePoint Venture Growth BDC Corp.’s $50 million of 6.75% $25-par notes due July 15, 2020 began trading on the New York Stock Exchange on Friday.

The ticker symbol is “TPVZ.” The deal priced July 30.

On Friday, the notes were seen at $24.54.

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