Morning Commentary: Primary busy; Public Storage trails; Associated Banc-Corp under par

By James McCandless

San Antonio, June 10 – The preferred space opened the midpoint of the week declining with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.11%.

In a busy primary market, Sempra Energy announced plans to price a $1,000-par offering of series C fixed-rate reset cumulative redeemable perpetual preferred stock.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the bookrunners.

The dividend resets on Oct. 15, 2025 and every five years thereafter at the Treasury rate plus a spread.

Also, American Equity Investment Life Holding Co. plans to price an offering of $25-par series B fixed-rate reset non-cumulative preferred stock.

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

On Sept. 1, 2025 and every five years thereafter, the dividend resets to the Treasury rate plus a spread.

ConnectOne Bancorp, Inc. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Keefe, Bruyette & Woods, Inc. and Goldman Sachs are the bookrunners.

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

Leading the secondary market, real estate investment trust Public Storage’s new 4.625% series L cumulative preferred shares were trailing as the morning started.

The preferreds, trading under the temporary symbol “PUBXL,” were shaving off 5 cents to $24.95 on volume of about 140,000 shares.

Sector peer Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferreds moved along the same trend.

The preferreds (NYSE: PEIPrC) were diving $1.89 to $8.01 with about 46,000 shares trading.

Meanwhile, Associated Banc-Corp’s new $100 million 5.625% series F non-cumulative perpetual preferred stock was seen trading just below par.

The preferreds, trading under the temporary symbol “ABBCL,” were at $24.98 on volume of about 132,000 shares.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was dropping.

The preferreds (NYSE: JPMPrJ) were down 6 cents to $25.07 with about 53,000 shares trading.

In the utilities space, Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred shares were also under pressure.

The preferreds (NYSE: JEPrA) were falling 67 cents to $3.28 on volume of about 48,000 shares.

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