Entergy Texas taps $25-par market; Wells Fargo active, unchanged; Allstate weaker

By James McCandless

San Antonio, Sept. 3 – The preferred primary space came alive on Tuesday as the secondary saw broad gains.

In primary activity, Entergy Texas, Inc. priced a $35 million offering of $25-par series A cumulative preferred stock with a dividend of 5.375%.

The secondary saw Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds were active but unchanged.

Elsewhere in finance Bank of America Corp.’s 6% series GG non-cumulative preferred stock spent the session rising.

Meanwhile, in insurance, Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock ended weaker.

Sector peer Aspen Insurance Holdings Ltd.’s 5.625% non-cumulative perpetual preference shares fell.

REIT New Residential Investment Corp.’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds followed the preferred market upward.

Entergy prices

In the primary space, Entergy Texas priced a $35 million offering of $25-par series A cumulative preferred stock with a dividend of 5.375%.

There is no greenshoe.

The deal, announced Tuesday morning, came in at the expected $35 million deal size and below talk for a yield of 5.5%.

Morgan Stanley & Co. LLC is the bookrunner.

The preferreds are redeemable on or after Oct. 15, 2024 at par. Prior to that, they are redeemable within 120 days after a ratings event at $25.50.

Wells Fargo flat

Leading in the secondary, Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds were active but finished unchanged.

The preferreds (NYSE: WFCPrQ) closed the day level at $26.40 on volume of about 399,000 shares.

Elsewhere in the finance space, Bank of America’s 6% series GG non-cumulative preferred stock was rising for the majority of the session.

The preferreds (NYSE: BACPrB) added 5 cents to close at $26.89 with about 286,000 shares trading.

On Friday, the preferreds lost 9 cents.

Allstate weaker

Meanwhile, in the insurance space, Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock ended the session weaker.

The preferreds (NYSE: ALLPrH) declined by 6 cents to close at $26.20 on volume of about 356,000 shares.

On Friday, the preferreds gained 15 cents.

Sector peer Aspen Insurance’s 5.625% non-cumulative perpetual preference shares also fell.

The preferreds (NYSE: AHLPrE) shaved off 2 cents to close at $25.86 with about 317,000 shares trading.

New Residential better

Real estate investment trust New Residential’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds followed the preferred market upward.

The preferreds (NYSE: NRZPrB) picked up 3 cents to close at $25.11 on volume of about 343,000 shares.

On Friday, the preferreds improved by 5 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day up by 0.31%, increasing from a 0.22% gain in early Tuesday trading.

The iShares US Preferred Stock ETF was up 1 cent to $37.26.

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