Brookfield prices preferred units; First Republic gains; MFA Financial rises

By James McCandless

San Antonio, Sept. 14 – The preferred space opened a new week with a jump across multiple sectors with a bustling primary market as the backdrop.

In primary activity, Brookfield Infrastructure Partners LP priced a $200 million offering of $25-par series 13 class A preferred limited partnership units with a dividend of 5.125% at par.

Also, Generex Biotechnology Corp. announced plans to price a $33 million offering of series A cumulative redeemable perpetual preferred stock with a dividend of 13% at $33.00 per share.

Concurrently, NuGenerex Immuno-Oncology Inc. plans to price a best-efforts offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 13%.

Gladstone Investment Corp. plans to price up to $350 million of $25-par notes due Nov. 1, 2040 with a coupon of 6%.

Leading the secondary, First Republic Bank’s new 4.125% series K non-cumulative perpetual preferred stock gained.

Elsewhere in the finance space, Capital One Financial Corp.’s new 4.625% series K and 4.8% series J fixed-rate non-cumulative perpetual preferred stock weakened.

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

REIT MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock rose.

Meanwhile, telecom company AT&T, Inc.’s 4.75% series C perpetual preferred stock was also boosted.

Brookfield prices

In afternoon primary activity, Brookfield Infrastructure priced a $200 million offering of $25-par series 13 class A preferred limited partnership units (BBB-) with a dividend of 5.125% at par.

Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Oct. 15, 2025 at par. Prior to that, the preferreds are redeemable after a tax event at par or after a ratings event at 102%.

Generex on deck

Also, Generex announced plans to price a $33 million offering of series A cumulative redeemable perpetual preferred stock with a dividend of 13% at $33.00 per share.

Dawson James Securities, Inc. is the bookrunner.

Dividends are payable monthly.

The preferreds are redeemable on or after Sept. 15, 2023 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

NuGenerex’s deal

Concurrently, NuGenerex plans to price a best-efforts offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 13%.

Dawson James Securities, Inc. is the bookrunner.

Dividends are payable monthly.

The preferreds are redeemable after three years at par. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

Gladstone’s offering

Gladstone Investment plans to price up to $350 million of $25-par notes due Nov. 1, 2040 with a coupon of 6%.

Gladstone Securities is the bookrunner.

Coupons are payable monthly.

The notes are redeemable by the holder at $22.50.

First Republic gains

Leading the Monday secondary market, First Republic’s new 4.125% series K non-cumulative perpetual preferred stock gained.

The preferreds, trading under the temporary symbol “FRCLL,” were up 16 cents to close at $25.13 on volume of about 2.2 million shares.

Elsewhere in the finance space, Capital One’s new 4.625% series K and established 4.8% series J fixed-rate non-cumulative perpetual preferred stocks both weakened by the end of the afternoon.

The series K preferreds, trading under the temporary symbol “COFKL,” dived 32 cents to close at $24.35 with about 408,000 shares trading.

On Friday, the preferreds closed under par on its first day.

The series J preferreds (NYSE: COFPrJ) shaved off 2 cents to close at $24.59 with about 300,000 shares trading.

On Friday, the preferreds tacked on 8 cents.

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

The preferreds (NYSE: WFCPrZ) were pushed up 11 cents to close at $24.94 on volume of about 360,000 shares.

On Friday, the preferreds fell 9 cents.

MFA rises

Real estate investment trust MFA Financial’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock was on the rise through the session.

The preferreds (NYSE: MFAPrC) shot up 18 cents to close at $18.16 with about 303,000 shares trading.

AT&T boosted

Meanwhile, telecom services company AT&T’s 4.75% series C perpetual preferred stock was also boosted.

The preferreds (NYSE: TPrC) leapt 19 cents to close at $25.59 on volume of about 204,000 shares.

On Friday, the preferreds rose 1 cent.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index moved up 0.32% at the close, adding onto the 0.22% gain from early Monday trading.

The iShares US Preferred Stock ETF was up 24 cents to $36.47.

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