DTE prices debentures; TFC Financial preferreds decline; Athene boosted

By James McCandless

San Antonio, Sept. 22 – By the end of the Tuesday preferred market session, top traders were trending positively.

In the primary space, DTE Energy Co. sold a $200 million offering of $25-par 2020 series G junior subordinated notes due Oct. 15, 2080 at par with a coupon in of 4.375%.

As the leader of secondary volume, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock declined.

Elsewhere in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were under pressure.

Sector peer Bank of America Corp.’s 6.2% series CC non-cumulative preferred stock was seen moving higher as the day ended.

Retirement services provider Athene Holding Ltd.’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares were boosted.

Meanwhile, telecom giant AT&T, Inc.’s 4.75% series C perpetual preferred stock followed the market trend, pushing higher.

DTE prices

In the primary space, DTE sold a $200 million offering of $25-par 2020 series G junior subordinated notes due Oct. 15, 2080 (Baa3/BBB-/BB+) at par with a coupon in of 4.375%.

There is a $30 million greenshoe.

The deal was upsized from an initial $150 million and matched talk for a coupon in the 4.375% area.

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

The debentures are redeemable on or after Oct. 15, 2025 at par. Prior to that, the debentures are redeemable following a tax event at par or a rating agency event at 102%.

Truist declines

As the leader of Tuesday secondary volume, Truist’s 4.75% series R non-cumulative perpetual preferred stock declined.

The preferreds (NYSE: TFCPrR) were down 5 cents to close at $26.09 on volume of about 466,000 shares.

On Monday, the preferreds gave up 5 cents.

Elsewhere in the finance space, Bank of America’s 6.2% series CC non-cumulative preferreds were seen moving higher as the day ended.

The preferreds (NYSE: BACPrC) picked up 12 cents to close at $25.75 with about 258,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were under pressure.

The preferreds (NYSE: ALLYPrA) were shedding 2 cents to close at $25.10 on volume of about 216,000 shares.

On Monday, the preferreds jumped up 20 cents.

Athene boosted

Retirement services provider Athene’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares were boosted.

The preferreds (NYSE: ATHPrC) jumped up 24 cents to close at $27.09 with about 450,000 shares trading.

AT&T higher

Meanwhile, telecom giant AT&T’s 4.75% series C perpetual preferred stock followed the prevailing market trend, pushing higher.

The preferreds (NYSE: TPrC) rose 5 cents to close at $25.60 on volume of about 218,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day up by 0.42%, shooting past the 0.01% bump in early Tuesday trading.

The iShares US Preferred Stock ETF was up 5 cents to $36.23.

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