First Western taps market; SoCal Edison lifted; Bank of America preferreds better

By James McCandless

San Antonio, Nov. 25 – On the last day of trading before the Thanksgiving holiday, the preferred market was mixed Wednesday.

In the primary pipeline, First Western Financial, Inc. priced a $10 million offering of fixed-to-floating rate subordinated notes due Dec. 1, 2030 at par with an initial coupon of 4.25%.

Leading the day’s activity in the secondary, utilities name Southern California Edison’s 5% cumulative trust preferred securities were lifted.

Elsewhere, in the finance space, Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock ended the day better.

Sector peer Oaktree Capital Group, LLC’s 6.55% series B non-cumulative preferred units were under pressure.

U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock finished the afternoon in a higher position.

Meanwhile, insurance provider Brighthouse Financial, Inc.’s 5.375% series C non-cumulative perpetual preferred stock rose.

First Western prices

Coming down the primary pipeline, First Western priced a $10 million offering of fixed-to-floating rate subordinated notes due Dec. 1, 2030 at par with an initial coupon of 4.25%.

Keefe, Bruyette & Woods, Inc. is the placement agent.

The coupon is fixed until Dec. 1, 2025, then converts to a floating rate of the three-month SOFR plus 402 basis points.

The notes are redeemable on or after Dec. 1, 2025.

SoCal Edison lifted

Leading the day’s activity in the secondary space, utilities name Southern California Edison’s 5% cumulative trust preferred securities were lifted.

The preferreds (NYSE: SCEPrL)

On Tuesday, the preferreds tacked on 6 cents.

Bank of America better

Elsewhere, in the finance space, Bank of America’s 4.375% series NN non-cumulative preferred stock ended the day on better footing.

The preferreds (NYSE: BACPrO) improved by 4 cents to close at $26.07 with about 435,000 shares trading.

Sector peer Oaktree Capital’s 6.55% series B non-cumulative preferred units spent the session under pressure.

The preferreds (NYSE: OAKPrB) were docked 1 cent to close at $27.61 on volume of about 424,000 shares.

U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock finished the afternoon in a higher position.

The preferreds (NYSE: USBPrQ) gained 10 cents to close at $24.80 with about 264,000 shares trading.

Brighthouse rises

Meanwhile, insurance provider Brighthouse’s 5.375% series C non-cumulative perpetual preferred stock rose.

The preferreds (Nasdaq: BHFAN) shifted up 14 cents to close at $25.75 on volume of about 335,000 shares.

On Tuesday, the preferreds declined by 15 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day down by 0.22%.

The index drifted down 0.10% on Tuesday, ended Monday up by 0.21% and moved down 0.04% on Friday.

The iShares US Preferred Stock ETF was down 2 cents to $37.75.

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