Capitala adds to calendar; GasLog’s new preference units free to trade; AmTrust falls

By Stephanie N. Rotondo

Seattle, May 9 – Expectations of a building preferred stock calendar were sated on Tuesday as Capitala Finance Corp. announced plans to sell $50 million of $25-par notes due 2022.

The chatter has been that at least a couple deals – likely from master limited partnerships and business development companies – would emerge this week. So far, the market has seen one issue from an MLP, with GasLog Partners LP pricing $125 million of 8.625% series A fixed-to-floating rate cumulative redeemable preference units late Monday. The Capitala deal satisfies the BDC side.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Janney Montgomery Scott LLC, William Blair & Co. LLC and Wunderlich Securities Inc. are running the books on the Capitala offering.

The 7.125% notes traded up a nickel to $25.54 prior to the announcement. However, trading volume was less than average for the day.

Meanwhile, the GasLog units freed to trade early in Tuesday trading.

A trader said the deal did well upon freeing, seeing the paper quoted in a par to $25.05 range.

Another market source saw the units closing at $25.05.

The distribution rate will be fixed until June 15, 2027. After that, the rate will float at Libor plus 631 basis points.

As for the secondary, a trader said AmTrust Financial Services Inc.’s paper was “swinging around” and lower after the company reported weak first-quarter results.

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