Priority Income sells $25-par preferreds; Gladstone on tap; Wells Fargo gain

By James McCandless

San Antonio, Feb. 20 – In the back half of the week, the preferred space saw a reversal of Wednesday’s negative movement.

Thursday’s primary market saw Priority Income Fund, Inc. price a $30 million offering of series F term preferred stock due 2027 with a dividend of 6.625% at par.

Also, Gladstone Commercial Corp. started a $636.5 million best-efforts offering of its $25-par series F cumulative redeemable preferred stock with a dividend of 6% while Gladstone Land Corp. started a similar deal.

In first position in the secondary, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock gained.

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

Telecom name AT&T, Inc.’s recent 4.75% series C perpetual preferred stock was in a more positive position by day’s end.

Diversified utility Brookfield Renewable Partners LP’s new $200 million 5.25% series 17 class A preferred limited partnership units finished well above par.

Meanwhile, REIT New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock improved.

Priority Income prices

The primary market saw Priority Income come down the pipeline with a $30 million offering of series F term preferred stock due 2027 with a dividend of 6.625% at par on Thursday.

There is a $4.5 million greenshoe.

The deal was announced on Wednesday.

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

Gladstone on tap

Also, Gladstone Commercial started a $636.5 million best-efforts offering of its $25-par series F cumulative redeemable preferred stock with a dividend of 6%.

The company has designated $500 million as the primary offering at $25.00 per share and up to $136.5 million as a dividend reinvestment plan at $22.75 per share.

Gladstone Land came in with a similar offering of $13 million $25-par series C cumulative redeemable preferred stock with a dividend of 6%.

The company has designated $10 million as the primary offering at $25.00 per share and up to $3 million as a dividend reinvestment plan at $22.75 per share. Proceeds from the DRIP offering are $2.73 million.

Gladstone Securities, LLC is the dealer-manager for both offerings.

Wells Fargo gains

In first position in secondary volume, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock gained ground.

The preferreds (NYSE: WFCPrZ) were up 15 cents to close at $25.50 on volume of about 2 million shares.

On Wednesday, the preferreds shed 14 cents.

Elsewhere in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock followed the market trend.

The preferreds (NYSE: COFPrJ) rose 7 cents to close at $25.01 with about 1 million shares trading.

On Wednesday, the preferreds dropped 6 cents.

AT&T positive

Telecom services name AT&T’s recent 4.75% series C perpetual preferred stock was in a more positive position by the end of the afternoon.

The preferreds, trading under the temporary symbol “ATTXL,” tacked on 3 cents to close at $25.21 on volume of about 1.8 million shares.

On Wednesday, the preferreds shed 1 cent.

Brookfield above par

Diversified utility company Brookfield Renewable’s new $200 million 5.25% series 17 class A preferred limited partnership units finished the session well above par.

The preferreds, trading under the temporary symbol “BKFRF,” were seen closing at $25.72 with about 970,000 shares trading.

The deal priced on Wednesday.

New Residential rises

Meanwhile, real estate investment trust New Residential’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock chalked up an improvement.

The preferreds (NYSE: NRZPrC) garnered 8 cents to close at $24.95 on volume of about 454,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index pushed up 0.43% by the close, adding onto a 0.16% rise from early Thursday trading.

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