New Residential prices; Orchid Island on tap; Wells Fargo active, unchanged

By James McCandless

San Antonio, Feb. 11 – The preferred space saw more positive movement Tuesday as new issuance saw much of the focus.

Coming to market, New Residential Investment Corp. priced a $350 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.375% at par.

Also, Orchid Island Capital, Inc. announced plans to price an offering of $25-par series A cumulative redeemable preferred stock at par.

At the top of secondary trading, financial company Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was active but unchanged.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved.

Meanwhile, real estate name Brookfield Property Partners LP’s new $250 million 5.75% series 3 class A cumulative redeemable perpetual preferred units ended above par.

REIT AGNC Investment Corp.’s recent 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock followed the positive trend.

Elsewhere, insurance provider MetLife, Inc.’s 4.75% series F non-cumulative preferred stock tracked higher.

New Residential prices

Coming to market on Tuesday afternoon, New Residential priced a $350 million offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.375% at par.

There is a $52.5 million greenshoe.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Keefe, Bruyette & Woods, Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

The dividend is fixed until Feb. 15, 2025, then converts to a floating rate of Libor plus 496.9 basis points.

The preferreds are redeemable on or after Feb. 15, 2025 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control.

Orchid Island on tap

Also, Orchid Island said that it plans to price an offering of $25-par series A cumulative redeemable preferreds stock at par.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and MUFG are the joint bookrunners.

Lead managers are JonesTrading Institutional Services LLC, National Securities Corp. and William Blair & Co.

The preferreds are redeemable after five years. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

Wells Fargo active, flat

At the top of secondary trading, financial services company Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock was active but finished unchanged.

The preferreds (NYSE: WFCPrZ) were level to close at $25.55 on volume of about 2 million shares.

On Monday, the preferreds shot up 13 cents.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved as the afternoon ended.

The preferreds (NYSE: COFPrJ) picked up 6 cents to close at $25.00 with about 1.9 million shares trading.

On Monday, the preferreds went up 2 cents.

Brookfield past par

Meanwhile, real estate developer Brookfield Property’s new $250 million 5.75% series 3 class A cumulative redeemable perpetual preferred units ended their first day above par.

The preferreds, trading under the temporary symbol “BOPTP,” ended at $25.37 on volume of about 1.3 million shares.

The deal priced on Monday.

AGNC better

Real estate investment trust AGNC’s recent 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock followed the session’s positive trend.

The preferreds, trading under the temporary symbol “AINGZ,” rose 3 cents to close at $24.95 with about 868,000 shares trading.

On Monday, the preferreds shaved off 2 cents.

MetLife adds

Elsewhere, insurance provider MetLife’s 4.75% series F non-cumulative preferred stock tracked higher.

The preferreds (NYSE: METPrF) rose 4 cents to close at $25.80 on volume of about 361,000 shares.

On Monday, the preferreds tacked on 8 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day better by 0.04%, leveling off from a 0.06% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was up 9 cents to $38.29.

© 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.