Morning Commentary: WesBanco, Level One Bancorp preferreds on tap; Legg Mason lower

By James McCandless

San Antonio, Aug. 4 – The preferred market started Tuesday pushing higher with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.09%.

The primary market saw WesBanco, Inc. announce plans to price an offering of $25-par series A fixed-rate reset non-cumulative perpetual preferred stock.

Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the bookrunners.

On Nov. 15, 2025 and every five years thereafter, the dividend resets to the Treasury rate plus a spread.

The preferreds are redeemable on or after Nov. 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event at par.

Meanwhile, Level One Bancorp, Inc. said it plans to sell $25-par series B non-cumulative perpetual preferred stock.

Piper Sandler & Co. is the bookrunner.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

The company plans to list the preferreds on the Nasdaq under the symbol “LEVLP.”

Level One is a Farmington Hills, Mich.-based bank holding company.

Leading secondary trading volume, asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were under water.

The notes (NYSE: LMHB) were down 25 cents to $24.92 on volume of about 346,000 shares.

On Monday, S&P Global Ratings lifted the company’s junior subordinated debt ratings to A3 and Baa1 following news that the notes would be delisted on Aug. 20.

Elsewhere, in the finance space, Goldman Sachs Group, Inc.’s 5.5% series J fixed-to-floating rate perpetual non-cumulative preferreds were improving as the session began.

The preferreds (NYSE: GSPrJ) were gaining 18 cents to $27.19 with about 98,000 shares trading.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds were also following a positive track.

The preferreds (NYSE: WFCPrZ) were rising 8 cents to $24.73 on volume of about 49,000 shares.

Elsewhere, Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferred shares were falling.

The preferreds (NYSE: PEIPrC) were declining by 51 cents to $4.19 with about 61,000 shares trading.

National Retail Properties, Inc.’s 5.2% series F cumulative redeemable preferred stock was relatively active but unchanged so far.

The preferreds (NYSE: NNNPrF) were holding level at $24.56 on volume of about 47,000 shares.

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