Public Storage taps $25-par market; AT&T preferreds gain; NuStar improves

By James McCandless

San Antonio, Dec. 11 – The preferred space closed the Wednesday session on an upward push.

In the primary market, Public Storage priced a $200 million offering of $25-par series K cumulative preferred shares at par with a dividend of 4.75%.

Leading in the secondary, telecom name AT&T Inc.’s new 5% series A perpetual preferred stock saw a gain.

Meanwhile, oil and gas name NuStar Energy LP’s 7.625% fixed-to-floating rate subordinated notes due 2043 and its 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferreds were both improving.

Closed-end fund Gabelli Equity Trust Inc.’s new $100 million 5% series K cumulative preferred stock landed below par.

Elsewhere, in finance, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds rose.

Sector peer Synchrony Financial’s 5.625% series A fixed-rate non-cumulative perpetual preferred stock followed the trend.

Public Storage prices

In the Wednesday primary market, Public Storage priced a $200 million offering of $25-par series K cumulative preferred shares at par with a dividend of 4.75%.

There is a $30 million greenshoe.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable on or after Dec. 20, 2024 at par. Prior to that, the preferreds are redeemable if the company needs to preserve its status as a real estate investment trust.

AT&T gains

Leading in the secondary, telecom name AT&T’s new 5% series A perpetual preferred stock saw a gain by the close.

The preferreds, trading under the temporary symbol “ATATL,” were up 10 cents to close at $25.19 on volume of about 1 million shares.

On Tuesday, the preferreds added 14 cents.

NuStar improves

Meanwhile, oil and gas name NuStar’s 7.625% fixed-to-floating rate subordinated notes due 2043 and its 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferreds were both seen improving.

The notes (NYSE:NSS) picked up 7 cents to close at $26.23 with about 412,000 shares trading.

The preferreds (NYSE: NSPrB) shot up 24 cents to close at $21.62 with about 385,000 shares trading.

Gabelli under par

Closed-end equity mutual fund Gabelli Equity Trust’s new $100 million 5% series K cumulative preferred stock landed under par on its first trading day.

The preferreds, trading under the temporary symbol “GBLQP,” closed at $24.97 on volume of about 392,000 shares.

The deal priced on Tuesday.

Capital One rises

Elsewhere, in the finance space, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds spent the session rising.

The preferreds (NYSE: COFPrI) tacked on 8 cents to close at $24.92 with about 329,000 shares trading.

Sector peer Synchrony’s 5.625% series A fixed-rate non-cumulative perpetual preferred stock followed the market trend upward.

The preferreds (NYSE: SYFPrA) shot up 9 cents to close at $25.47 on volume of about 312,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index climbed 0.38% at the end of Wednesday, adding to the 0.07% rise from early Wednesday trading.

The iShares US Preferred Stock ETF was up 13 cents to $37.08.

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