Morning Commentary: Deal flow steady as Two Harbors joins calendar; TriplePoint not freed

By Stephanie N. Rotondo

Seattle, July 12 – The preferred stock primary market continued to churn out deals on Wednesday, as Two Harbors Investment Corp. announced a new issue.

The company said it was offering at least $75 million of series B fixed-to-floating rate cumulative redeemable preferreds, with price talk at 7.75%.

A trader saw the issue at $24.70 bid in the early gray market.

As for the company’s 8.125% series A fixed-to-floating rate cumulative redeemable preferreds (NYSE: TWOPrA), they were off 34 cents, or 1.24%, at $27.00 in early trading.

Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and Keefe Bruyette & Woods Inc. are running the books.

From Tuesday’s business, TriplePoint Venture Growth BDC Corp.’s $65 million of 5.75% $25-par notes due 2022 had not yet freed to trade, according to a trader.

The trader saw the issue at $24.90 bid in the gray.

The deal came upsized from $55 million. Initial price talk was 5.875%.

Keefe Bruyette & Woods, Morgan Stanley and Deutsche Bank Securities Inc. were the bookrunners.

And, American Homes 4 Rent’s $115 million of 5.875% series G cumulative redeemable preferreds – a deal priced Monday – were lower as the day started, trading off 4 cents to $24.95.

The deal came upsized from $100 million and priced at the tight end of the 5.875% to 6% price talk.

The issue freed to trade on Tuesday and was assigned a temporary ticker, “AMMRP.”

Wells Fargo Securities LLC, BofA Merrill Lynch and Raymond James led the deal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.