Medalist to tap $25-par market; Wells Fargo improves; Allstate preferreds decline

By James McCandless

San Antonio, Feb. 3 – The preferred space began the week with positivity among top traders, though the rest of the market varied.

In primary activity, Medalist Diversified REIT, Inc. plans to price an offering of up to $20 million $25-par series A cumulative redeemable preferred stock with a dividend of 8%.

Leading in the secondary again, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock improved.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 6.125% series Y non-cumulative preferred stock was lifted.

Sector peer Capital One Financial Corp.’s recent 4.8% series J fixed-rate non-cumulative perpetual preferreds ticked higher.

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

MetLife, Inc.’s 4.75% series F non-cumulative preferred stock ended the afternoon at a better level.

Medalist on tap

Opening up the primary market this week, Medalist plans to price an offering of up to $20 million $25-par series A cumulative redeemable preferred stock with a dividend of 8%.

Aegis Capital is the bookrunner.

Medalist plans to use the proceeds for acquiring additional properties, for working capital, for general corporate purposes and to repay outstanding debt.

Wells Fargo up

Leading in the secondary market again, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock improved in Monday trading.

The preferreds (NYSE: WFCPrZ) were up 2 cents to close at $25.16 on volume of about 1.1 million shares.

On Friday, the preferreds fell 9 cents.

Elsewhere in the finance space, JPMorgan’s 6.125% series Y non-cumulative preferred stock was lifted as the session ended.

The preferreds (NYSE: JPMPrF) picked up 7 cents to close at $25.12 with about 594,000 shares trading.

Sector peer Capital One’s recent 4.8% series J fixed-rate non-cumulative perpetual preferreds trickled higher.

The preferreds, trading under the temporary symbol “CPONZ,” gained 4 cents to close at $24.83 on volume of about 534,000 shares.

On Friday, the preferreds shaved off 5 cents.

Allstate lower

Meanwhile, insurance provider Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock declined.

The preferreds (NYSE: ALLPrH) shaved off 13 cents to close at $26.24 with about 278,000 shares trading.

MetLife’s 4.75% series F non-cumulative preferred stock ended Monday afternoon at a better level.

The preferreds (NYSE: METPrE) added 8 cents to close at $25.66 on volume of about 194,000 shares.

On Friday, the preferreds slipped 14 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished the session with a 0.24% rise, adding onto the 0.15% shift upward from early Monday trading.

The iShares US Preferred Stock ETF was down 16 cents to $38.00.

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