AXA, Global Net Lease price; American Equity weaker; Synchrony preferreds improve

By James McCandless

San Antonio, Nov. 20 – The preferred market saw varied movements in Wednesday trading.

In primary activity, AXA Equitable Holdings, Inc. priced a $725 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock at par with a dividend of 5.25%.

Also, Global Net Lease, Inc. priced a $75 million offering of $25-par series B cumulative redeemable perpetual preferred stock at par with a dividend of 6.875%.

As the volume leader, annuities name American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferreds were weaker.

Elsewhere, in finance, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock improved.

Sector peer JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferreds took a small loss.

Morgan Stanley’s new 4.875% series L non-cumulative preferred stock declined.

Real estate investment trust Public Storage’s 4.7% series J cumulative preferred shares ended on better footing.

AXA’s deal

In Wednesday primary activity, AXA priced a $725 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock (Ba1/BBB-) at par with a dividend of 5.25%.

There is a $108.75 million greenshoe.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the joint bookrunners.

Dividends will be payable on March 15, June 15, Sept. 15 and Dec. 15 of each year, commencing on March 15, 2020.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par and within 90 days after a rating agency event at $25.50.

Global Net Lease prices

Also, Global Net Lease priced a $75 million offering of $25-par series B cumulative redeemable perpetual preferred stock at par with a dividend of 6.875%.

There is an $11.25 million greenshoe.

B. Riley FBR, Inc., BMO Capital Markets Corp., Ladenburg Thalmann & Co. Inc. and D.A. Davidson & Co. are the joint bookrunners.

Dividends will be payable on Jan. 15, April 15, July 15 and Oct. 15 of each year, starting on Jan. 15, 2020.

The preferreds are redeemable after Nov. 26, 2024 at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event and within 120 days after a change of control at par.

American Equity off

As the volume leader for Wednesday, annuities name American Equity’s new 5.95% series A fixed-rate reset non-cumulative preferreds were weaker by the close.

The preferreds, trading under the temporary symbol “AQYVL,” were down 5 cents to close at $25.80 on volume of about 1.1 million shares.

On Tuesday, the preferreds jumped up 31 cents.

Synchrony improves

Elsewhere, in the finance space, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock improved.

The preferreds, trading under the temporary symbol “SNFI,” gained 10 cents to close at $25.38 with about 1.1 million shares trading.

Sector peer JPMorgan Chase’s 4.75% series GG non-cumulative perpetual preferreds took a small loss at the end of the afternoon.

The preferreds (NYSE: JPMPrJ) shaved off 1 cent to close at $25.22 on volume of about 893,000 shares.

On Tuesday, the preferreds picked up 20 cents.

Morgan Stanley’s new 4.875% series L non-cumulative preferred stock also declined.

The preferreds, trading under the temporary symbol “MSLQL,” lost 4 cents to close at $24.95 with about 525,000 shares trading.

Public Storage better

Meanwhile, real estate investment trust Public Storage’s 4.7% series J cumulative preferred shares ended the session on better footing.

The preferreds (NYSE: PSAPrJ) improved by 5 cents to close at $25.20 on volume of about 272,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index closed up by 0.07%, adding onto the 0.03% rise from early Wednesday trading.

The iShares US Preferred Stock ETF was up 2 cents to $37.25.

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