Investcorp taps market; Bank of America declines; Energy Transfer better

By James McCandless

San Antonio, Oct. 15 – The preferred space took a negative slant in the Tuesday session, with top traders diverging.

In the primary market, Investcorp Credit Management BDC, Inc. plans to offer more of its 6.125% notes due 2023.

Leading in the secondary, Bank of America Corp.’s 5% series LL non-cumulative preferred stock saw a decline.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock moved positively.

In oil and gas, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units ended the day upward.

Insurance provider Allstate Corp.’s 5.2% series H fixed-rate non-cumulative perpetual preferred stock was pushed lower.

Retirement name Athene Holding Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares dived.

Investcorp’s deal

In the primary market, Investcorp plans to offer more of its 6.125% notes (BBB-) due 2023.

There is a greenshoe.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and BB&T Capital Markets are the joint bookrunners.

The notes would add on to the $34.5 million outstanding.

BofA declines

Leading trading in the secondary space, finance name Bank of America’s 5% series LL non-cumulative preferred stock saw a decline on Tuesday.

The preferreds (NYSE: BACPrN) were down 6 cents to close at $25.68 on volume of about 1.7 million shares.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock moved positively.

The preferreds (NYSE: COFPrI) picked up 3 cents to close at $25.07 with about 332,000 shares trading.

Energy Transfer up

Meanwhile, in oil and gas, Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units ended the day moving upward.

The preferreds (NYSE: ETPPrE) added 2 cents to close at $25.58 on volume of about 460,000 shares.

Allstate off

Insurance provider Allstate’s 5.2% series H fixed-rate non-cumulative perpetual preferred stock was pushed lower.

The preferreds (NYSE: ALLPrH) fell 14 cents to close at $26.24 with about 243,000 shares trading.

Athene drops

Elsewhere, retirement services name Athene’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares took a dive.

The preferreds (NYSE: ATHPrA) dived 34 cents to close at $27.96 on volume of about 203,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.16% by the end of the session, reversing a 0.04% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was level at $37.49.

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