Ready Capital sells add-on; JPMorgan positive; Fortress preferreds under par

By James McCandless

San Antonio, Nov. 25 – The preferred space began a short week leaning in a positive direction.

In the primary market, Ready Capital Corp. priced an additional $45 million of its $25-par 6.2% senior notes due July 30, 2026.

Leading secondary activity, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferred stock closed positive.

Elsewhere in finance, AXA Equitable Holdings, Inc.’s new 5.25% series A fixed-rate non-cumulative perpetual preferred stock was active but rigid.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds were lifted.

Leasing name Fortress Transportation & Infrastructure Investors LLC’s new $100 million 8% series B fixed-to-floating rate cumulative perpetual redeemable preferreds closed under par.

Meanwhile, REIT Public Storage’s 4.7% series J cumulative preferred shares were pushed higher.

Ready Capital prices

In primary market movements, Ready Capital priced an additional $45 million of its $25-par 6.2% senior notes due July 30, 2026.

There is a $6.75 million greenshoe.

Sandler O'Neill & Partners, LP and B. Riley FBR, Inc. are the joint bookrunners.

Interest is payable on Jan. 30, April 30, July 30 and Oct. 30 of each year, beginning on Jan. 30, 2020.

The notes are redeemable on or after July 30, 2022 and before July 30, 2025 at 101%, after July 30, 2025 at par and upon a change-of-control repurchase event at 101%.

JPMorgan up

Leading Monday secondary activity, JPMorgan’s 4.75% series GG non-cumulative perpetual preferred stock closed positive.

The preferreds (NYSE: JPMPrG) were up 2 cents to close at $25.19 on volume of about 1.7 million shares.

On Friday, the preferreds went unchanged.

Elsewhere in the finance space, AXA’s new 5.25% series A fixed-rate non-cumulative perpetual preferred stock was active but rigid by the end of the day.

The preferreds, trading under the temporary symbol “AXQEL,” held level to close at $24.85 with about 1.2 million shares trading.

On Friday, the preferreds dipped 2 cents.

Sector peer Synchrony’s 5.625% series A non-cumulative perpetual preferreds were lifted as the session came to a close.

The preferreds (NYSE: SYFPrA) improved by 14 cents to close at $25.44 on volume of about 317,000 shares.

On Friday, the preferreds shaved off 8 cents.

Fortress under par

Transportation leasing name Fortress’ new $100 million 8% series B fixed-to-floating rate cumulative perpetual redeemable preferreds closed their first day under par.

The preferreds, trading under the temporary symbol “FTABP,” were seen closing at $24.93 with about 1.1 million shares trading.

The deal priced on Friday.

Public Storage higher

Meanwhile, real estate investment trust Public Storage’s 4.7% series J cumulative preferred shares were pushed higher through the session.

The preferreds (NYSE: PSAPrJ) gained 12 cents to close at $25.17 on volume of about 171,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was flat, losing a 0.01% gain from early Monday trading.

The iShares US Preferred Stock ETF was up 7 cents to $37.26.

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