Barclays sells securities; Remark, Great Ajax on tap; WesBanco preferreds above par

By James McCandless

San Antonio, Aug. 5 – In the middle of the week, the preferred market saw varying results by the end of trading.

In primary activity, Barclays plc priced $1.5 billion of fixed-rate resetting perpetual subordinated contingent convertible securities at par to yield 6.125%.

Also, Remark Holdings, Inc. plans to price a $15 million offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 9.5%.

Great Ajax Corp. plans to price $130 million of 7.25% series A and 5% series B preferred stock.

Leading the secondary space, WesBanco, Inc.’s new $150 million 6.75% series A fixed-rate reset non-cumulative perpetual preferred stock ended above par.

Elsewhere in the finance space, Truist Financial Corp.’s new 4.75% series R non-cumulative perpetual preferred stock turned negative.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved by the end of the session.

Asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were under pressure as the afternoon came to a close.

Meanwhile, REIT National Retail Properties, Inc.’s 5.2% series F cumulative redeemable preferreds dropped.

Barclays prices

In Wednesday primary activity, Barclays priced $1.5 billion of fixed-rate resetting perpetual subordinated contingent convertible securities (Ba2//BBB-) at par to yield 6.125% on Wednesday.

Initial talk was in the 6.625% area with guidance revised to the 6.375% area.

The notes will reset June 15, 2026 and every five years thereafter to a fixed rate of Treasuries plus 586.7 basis points.

Barclays was the bookrunner.

The securities are automatically converted into ordinary shares after a capital adequacy trigger event.

Remark on deck

Also, Remark plans to price a $15 million offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 9.5%.

Roth Capital Partners, LLC and Benchmark Co., LLC are the bookrunners.

Each preferred share comes with a common stock purchase warrant.

The preferreds are redeemable after three years. Prior to that, the preferreds are redeemable within 120 days after a change in control.

Great Ajax eyed

Great Ajax plans to price $130 million of 7.25% series A and 5% series B preferred stock

The company plans to sell $57,685,000 of the series A preferreds and $72,315,000 of the series B preferreds.

Also being sold is 125 million shares of common stock.

Dividends for both series of preferreds are payable on Jan. 6, April 6, July 6 and Oct. 6, starting on July 6, 2020.

On April 6, 2025 and every five years thereafter, the dividend resets to the Treasury rate plus 600 bps.

Both preferreds are redeemable on or after July 6, 2023 at par. Prior to that, the preferreds are redeemable after a change in control.

WesBanco past par

Leading the Wednesday secondary space, WesBanco’s new $150 million 6.75% series A fixed-rate reset non-cumulative perpetual preferred stock ended its first day above par.

The preferreds, trading under the temporary symbol “WSBKL,” closed at $25.50 on volume of about 949,000 shares.

The deal priced on Tuesday.

Elsewhere in the finance space, Truist’s new 4.75% series R non-cumulative perpetual preferred stock took a negative turn.

The preferreds, trading under the temporary symbol “TSTFL,” shaved off 4 cents to close at $25.31 with about 587,000 shares trading.

On Tuesday, the preferreds rose 8 cents.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved by the end of the session.

The preferreds (NYSE: ALLYPrA) picked up 14 cents to close at $24.37 on volume of about 353,000 shares.

On Tuesday, the preferreds dived 41 cents.

Legg Mason down

Asset manager Legg Mason’s 5.45% junior subordinated notes due 2056 were under pressure as the afternoon came to a close.

The notes (NYSE: LMHB) were docked 4 cents to close at $25.09 with about 662,000 shares trading.

On Tuesday, the notes shaved off 4 cents.

National Retail drops

Meanwhile, real estate investment trust National Retail’s 5.2% series F cumulative redeemable preferreds dropped to lower levels.

The preferreds (NYSE: NNNPrF) gave back 34 cents to close at $24.25 on volume of about 381,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.23%, weakening from a 0.02% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was up 15 cents to $36.09.

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