Morning Commentary: Veritex on tap; Public Storage below par; Wells Fargo improves

By James McCandless

San Antonio, Sept. 30 – The preferred market started with modest gains early Wednesday as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.07%.

Leading off the day’s primary movements, Veritex Holdings, Inc. announced plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event, or if the company is required to register as an investment company at par.

As the volume leader in the secondary, real estate investment trust Public Storage’s new $250 million 3.875% series N cumulative preferred shares were seen under par on their first trading day.

The preferreds, trading under the temporary symbol “PSADL,” were at $24.88 on volume of about 1.9 million shares.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was improving.

The preferreds (NYSE: WFCPrZ) were tacking on 8 cents to $25.31 with about 68,000 shares trading.

Sector peer Bank of America Corp.’s 6.2% series CC non-cumulative preferred stock opened the day with gains.

The preferreds (NYSE: BACPrC) were rising 4 cents to $25.38 on volume of about 36,000 shares trading.

Retirement services provider Athene Holding Ltd.’s 5.625% series B fixed-rate perpetual non-cumulative preferreds were dipping.

The preferreds (NYSE: ATHPrB) were shedding 6 cents to $25.89 with about 47,000 shares trading.

Elsewhere, communications name Qwest Corp.’s 6.625% notes due 2055 were relatively active but unchanged in early activity.

The notes (NYSE: CTZ) were holding level at $24.99 on volume of about 32,000 notes.

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