Brookfield Renewable sells preferred units; Priority Income on tap; AT&T trades lower

By James McCandless

San Antonio, Feb. 19 – The preferred market was dragged down on Wednesday with broad losses among the most-active securities.

The primary market saw Brookfield Renewable Partners LP price a $200 million offering of $25-par series 17 class A preferred limited partnership units at par with a dividend of 5.25%.

Also, Priority Income Fund, Inc. plans to price an offering of series F term preferred stock due 2027.

Leading secondary activity, AT&T, Inc.’s recent 4.75% series C perpetual preferred stock and 5% series A cumulative perpetual preferred stock both moved downward.

Meanwhile, in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock dipped.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds followed the day’s trend.

U.S. Bancorp’s series B floating rate non-cumulative perpetual preferred stock declined.

Elsewhere, AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was active but ultimately unchanged.

Brookfield prices

The primary market saw Brookfield Renewable price a $200 million offering of $25-par series 17 class A preferred limited partnership units (BBB-//DBRS: BBB (low)) at par with a dividend of 5.25%.

There is no greenshoe.

The deal was announced on Wednesday morning.

Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC are the joint bookrunners.

The preferreds are redeemable on or after March 31, 2025 at par. Prior to that, the preferreds are redeemable within 60 days after a tax event at par and within 120 days after a ratings event at $25.50.

Priority Income on tap

Also, Priority Income Fund plans to price an offering of series F term preferred stock due 2027, according to a press release.

Ladenburg Thalmann & Co. Inc. and Incapital LLC are the joint bookrunners.

The co-manager is Maxim Group LLC.

Priority Income plans to use the proceeds to acquire investments in accordance with its investment objectives and strategies and for general corporate capital purposes.

AT&T lower

Leading secondary activity for another day, telecom giant AT&T’s recent 4.75% series C perpetual preferred stock and 5% series A cumulative perpetual preferred stock both moved downward at the end of the session.

The series C preferreds, trading under the temporary symbol “ATTXL,” were down 1 cent to close at $25.19 on volume of about 1.7 million shares.

On Tuesday, the preferreds shaved off 1 cent.

The series A preferreds (NYSE: TPrA) fell 5 cents to close at $26.13 on volume of about 398,000 shares.

On Tuesday, the preferreds shot up 12 cents.

Capital One dips

Meanwhile, at the top of the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock dipped.

The preferreds (NYSE: COFPrJ) dropped 6 cents to close at $24.94 with about 777,000 shares trading.

On Tuesday, the preferreds garnered 2 cents.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferreds followed the day’s negative trend.

The preferreds (NYSE: WFCPrZ) shed 14 cents to close at $25.35 on volume of about 698,000 shares.

On Tuesday, the preferreds gained 1 cent.

U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferred stock was under pressure for most of the session.

The preferreds (NYSE: USBPrH) gave back 5 cents to close at $22.83 with about 449,000 shares trading.

AGNC flat

Elsewhere, real estate investment trust AGNC’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was relatively active but ultimately unchanged.

The preferreds (Nasdaq: AGNCP) closed level at $24.93 on volume of about 370,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was sent 0.65% lower by the close, reversing a 0.05% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was down 17 cents to $38.07.

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