Triangle Capital, Gladstone price new issues; Inland Real Estate plans add-on; RBS improves

By Stephanie N. Rotondo

Portland, Ore., Feb. 28 - There was "definitely more volume" in the preferred stock market on Tuesday, a market source reported.

"Volume was significantly improved," he said, adding that the general tone was positive.

Triangle Capital Corp. finally priced its offering of $25-par fixed-rate notes. The deal came upsized at $60 million and was given a 7% coupon. However, traders saw little goings-on in the gray market.

Also in the primary market, Inland Real Estate Corp. announced plans to price an add-on to its 8.125% series A cumulative redeemable preferreds. The news was deemed "kind of bizarre," and the existing preferreds traded downward.

In the secondary market, Royal Bank of Scotland Group plc was on the busier side - and higher - as the bank announced plans to exchange 12 series of tier 2 subordinated notes, including four dollar-denominated issues. The exchange will be done at a discount.

Triangle brings $25-par notes

Triangle Capital priced a $60 million offering of 7% $25-par fixed-rate senior notes due March 15, 2019 on Tuesday.

Plans for the deal were announced on Thursday.

A trader said he saw a $24.98 bid for the paper in the gray market.

"It's holding in there pretty nice," he said. However, he added that it was a "small deal" that was "not widely distributed."

Stifel Nicolaus & Co. Inc., Janney Montgomery Scott LLC, BB&T Capital Markets and Sterne, Agee & Leach, Inc. are the joint bookrunners. Robert W. Baird & Co. Inc. is the lead manager, and J.J.B. Hilliard, W.L. Lyons LLC, Ladenburg Thalmann & Co. Inc. and Wunderlich Securities Inc. are the co-managers.

The company intends to invest the proceeds in lower middle market companies in accordance with its investment objective and strategies and for working capital and general corporate purposes.

Triangle Capital is a specialty finance company that provides customized financing solutions to lower middle market companies. The company is based in Raleigh, N.C.

Inland plans add-on

Inland Real Estate is planning an add-on to its 8.125% series A cumulative redeemable preferreds, the company said in a filing with the Securities and Exchange Commission.

The company initially sold 2 million, or $50 million, of the preferreds on Oct. 3.

The preferreds trade on the New York Stock Exchange under the ticker symbol "IRCPA." The issue fell 42 cents, or 1.63%, to $25.40 on Tuesday, though in light trading.

A market source said the add-on is "kind of bizarre" given that the original issue was so small. Another trader agreed that it seems like a strange move.

Proceeds will be used for additional property purchases and for general corporate purposes, including the repayment of debt under the company's credit line.

Inland Real Estate is an Oak Brook, Ill.-based real estate investment trust.

Gladstone prices deal

Late in the day, Gladstone Investment Corp. priced a $35 million issue of 7.125% series A cumulative term preferreds.

The deal was originally announced Monday and was expected to come between 7% and 7.25%. The amount was expected to be $25 million.

Shortly before the market closed, a trader saw a less 25 cents bid for the issue in the gray market.

Another trader said that because the issue is on the smaller side, it isn't garnering "a lot of interest," though he added that "I think it is going to do well."

The company has applied to list the preferreds on the Nasdaq under the symbol "GAINP." Settlement is expected March 6.

Jeffries & Co., Inc. is the bookrunning manager. Janney Montgomery Scott is the joint lead manager. The co-managers are Hilliard Lyons and Wunderlich.

Proceeds will be used to repay borrowings under the company's credit facility. Any remaining funds will be used for investments and general corporate purposes.

National Retail lists

National Retail Properties Inc.'s $250 million issue of 6.625% $25-par series D cumulative redeemable preferred stock - a deal that priced Feb. 15 - officially listed on the NYSE, according to a trader.

The ticker symbol is "NNNPD." The preferreds fell 7 cents, closing at $25.07.

On Feb. 23, the company said that its over-allotment option had been exercised in full, bringing the total outstanding amount to $287.5 million.

Proceeds will be used to redeem all of the company's 7.375% series C cumulative redeemable preferreds (NYSE: NNNPC). That issue closed up 4 cents at $25.08.

The REIT is based in Orlando, Fla.

RBS up on exchange offer

Royal Bank of Scotland preferreds were climbing in active trading after the Edinburgh-based bank announced an exchange offer for 12 series of tier 2 capital securities.

The 6.08% noncumulative guaranteed trust preferreds (NYSE: RBSPG) were the busiest, with over 1 million shares changing hands. The issue gained 21 cents, or 1.61%, to end at $13.28.

The 5.9% noncumulative guaranteed trust preferreds (NYSE: RBSPE) were also active, moving up 19 cents, or 1.45%, to $13.28.

And the 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) improved by 22 cents, or 1.21%, to $18.43.

RBS is exchanging the lower tier 2 capital securities in order to improve the quality of its capital base, the company said in a press release. Of the 12 issues being called, four are dollar-denominated. Holders of the old notes will receive new issues that will be denominated in euros, U.S. dollars, Australian dollars, Canadian dollars and Swiss francs.

The exchange offer expires March 7.

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