Univest sells $1,000-par preferreds; Wells Fargo diverges; AT&T rises

By James McCandless

San Antonio, July 29 – Reaching into the second half of the week, the Wednesday preferred session continued to show positivity.

In primary activity, Univest Financial Corp. priced a $100 million offering of $1,000-par fixed-to-floating rate subordinated notes due Aug. 15, 2030 with an initial coupon of 5%.

At the top of the secondary, Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferred stock rose while its 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferreds weakened.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock saw better levels.

Sector peer U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock moved along the prevailing trend.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock rose by the afternoon’s end.

Meanwhile, insurance name MetLife, Inc.’s 4.75% series F non-cumulative preferred stock was positive for much of the day.

Univest prices

In primary activity, Univest priced a $100 million offering of $1,000-par fixed-to-floating rate subordinated notes due Aug. 15, 2030 (Kroll: BBB) with an initial coupon of 5%.

U.S. Bancorp Investments, Inc. is the bookrunner.

Coupons will be payable semiannually until Aug. 15, 2025, then the coupon will be payable on each Feb. 15, May 15, Aug. 15 and Nov. 15.

The coupon is fixed until Aug. 15, 2025, then converts to a floating rate of the three-month SOFR plus 495.2 basis points.

The notes are redeemable on or after Aug. 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par.

Wells Fargo varies

At the top of the midweek secondary market, Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferred stock rose while its 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferreds weakened.

The series Q preferreds (NYSE: WFCPrQ) were up 21 cents to close at $25.34 on volume of about 558,000 shares.

The series R preferreds (NYSE: WFCPrR) shaved off 4 cents to close at $26.84 on volume of about 203,000 shares.

Elsewhere in the finance space, JPMorgan’s 4.75% series GG non-cumulative preferred stock saw a move to better levels.

The preferreds (NYSE: JPMPrJ) improved by 20 cents to close at $27.29 with about 241,000 shares trading.

Sector peer U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock moved along the prevailing trend.

The preferreds (NYSE: USBPrM) shot up 24 cents to close at $26.49 on volume of about 191,000 shares.

AT&T rises

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock rose by the afternoon’s end.

The preferreds (NYSE: TPrC) added 9 cents to close at $25.04 with about 544,000 shares trading.

On Tuesday, the preferreds tacked on 5 cents.

MetLife better

Meanwhile, insurance name MetLife’s 4.75% series F non-cumulative preferred stock was positive for a majority of the day.

The preferreds (NYSE: METPrF) moved up 3 cents to close at $25.70 on volume of about 285,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index wrapped up the day up 0.77%, higher than the 0.21% boost from early Wednesday trading.

The iShares US Preferred Stock ETF was up 29 cents to $36.11.

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