Jernigan Capital registers more series B preferreds; Allstate’s $500 million issue active

By James McCandless

San Antonio, March 29 – Traders reported an active day in the preferreds market with newer issues leading the way to close a holiday week.

Jernigan Capital, Inc. registered an at-the-market offering for up to $45 million of its 7% series B cumulative redeemable perpetual preferred stock on Thursday.

Allstate Corp. closed the week with its new $500 million of $25-par perpetual preferred series G shares seeing much the of the day’s secondary activity.

Bank of America Corp.’s preferreds continued to move on news that it would redeem all series M and some series K preferreds.

Jernigan offers more series B

Late in the day, Jernigan Capital registered to sell up to $45 million more of its 7% series B cumulative redeemable perpetual preferred stock via an at-the-market offering.

B. Riley FBR, Inc. is the sales agent.

The original pricing in January was for $37.5 million, or 1.5 million shares.

The series B preferreds rose 37 cents on the day to close at $23.20.

Allstate active

Allstate’s new upsized $500 million of $25-par series G perpetual preferred shares closed an active but short week on Thursday, traders confirmed.

Traders saw the preferreds, listed under “ALLPrG” on the New York Stock Exchange, trade north of par again, landing in the $25.05 range.

Monday price talk had pegged the deal at $200 million with a yield around 5.625% and 5.75%.

The preferreds came with a 5.625% dividend that will begin paying out on June 15.

Bank of America trades

Bank of America saw its preferreds close out an active week, a market source confirmed, after the company announced on Wednesday that it would redeem all of its fixed-to-floating rate non-cumulative series M preferred stock and a portion of its fixed-to-floating rate non-cumulative series K preferred stock. The company is planning the M series redemption for May 15 and the series K redemption for April 30.

“Some of their preferreds came back down after some gains,” a trader said.

Traders reported seeing the issuer’s series C preferreds trade down 6 cents to $26.02. The series L preferreds lost 8 cents to $23.49.

Indices rise

The Wells Fargo Hybrid & Preferred Securities Financial index closed the week up 0.23%, expanding from the 0.08% gain from Thursday morning.

The iShares US Preferred Stock ETF gained $0.07 to close at $37.56.

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