Armada Hoffler sells add-ons; Farmer Mac prices preferreds; Truist lifted

By James McCandless

San Antonio, Aug. 13 – The preferred market finished the Thursday session on varying ground as top traders trended better.

In the primary space, Armada Hoffler Properties, Inc. priced $90 million more of its $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 6.75% at $24.75 per share.

Also, Federal Agricultural Mortgage Corp. sold $120 million of $25-par series F non-cumulative perpetual preferred stock with a dividend of 5.25% at par.

Remaining at the top of the secondary, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was lifted.

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

Sector peer WesBanco, Inc.’s 6.75% series A fixed-rate reset non-cumulative perpetual preferreds were moving along a positive track.

Utilities name Southern California Edison Co., a subsidiary of Edison International, saw its 5.45% cumulative fixed-to-floating rate trust preference securities decline.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock finished the session on an upward trend.

Armada Hoffler prices

In the Thursday primary space, Armada Hoffler priced $90 million more of its $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 6.75% at $24.75 per share.

With the new pricing, there will be 6,843,418 shares outstanding.

The company had 3,243,418 shares outstanding from the original pricing on June 18, 2019.

BofA Securities, Inc., Raymond James & Associates, Inc. and Jefferies LLC are the bookrunners.

The preferreds are redeemable on or after June 18, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control.

Farmer Mac’s deal

Also, Farmer Mac sold $120 million of $25-par series F non-cumulative perpetual preferred stock with a dividend of 5.25% at par.

Morgan Stanley & Co. LLC is the bookrunner.

The preferreds are redeemable on or after Oct. 17, 2025 or on any dividend payment date.

Truist lifted

Remaining at the top of the secondary, Truist’s 4.75% series R non-cumulative perpetual preferred stock was lifted as activity ended.

The preferreds (NYSE: TFCPrR) were up 10 cents to close at $25.72 on volume of about 472,000 shares.

On Wednesday, the preferreds shot up 17 cents.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities gained some ground.

The preferreds (NYSE: ALLYPrA) picked up 11 cents to close at $24.28 with about 353,000 shares.

Sector peer WesBanco’s 6.75% series A fixed-rate reset non-cumulative perpetual preferreds were moving along a positive track.

The preferreds (Nasdaq: WSBCP) improved by 21 cents to close at $26.30 on volume of about 321,000 shares.

SoCal Edison declines

Utilities name Southern California Edison’s 5.45% cumulative fixed-to-floating rate trust preference securities declined.

The preferreds (NYSE: SCEPrK) shaved off 10 cents to close at $22.60 with about 301,000 shares trading.

AT&T up

Meanwhile, telecom services provider AT&T’s 4.75% series C perpetual preferred stock finished the session on an upward trend.

The preferreds (NYSE: TPrC) tacked on 2 cents to close at $25.18 on volume of about 232,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day up by 0.05%, weakening from a 0.14% rise from early Thursday trading.

The iShares US Preferred Stock ETF was down 1 cent to $36.39.

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