Athene’s new preference shares top par; Rexford preferreds end lower; Capital One up

By James McCandless

San Antonio, Sept. 17 – The preferred space was virtually unchanged until the afternoon, when it received a positive boost.

In finance, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock jumped higher.

Sector peer JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds took a small loss.

Leading secondary trading, Athene Holding Ltd.’s new $300 million 5.625% series B fixed-rate perpetual non-cumulative preference shares closed above par.

REIT Rexford Industrial Realty, Inc.’s recent 5.625% series C cumulative redeemable preferreds finished the session weaker.

In the primary space, details emerged on Bank of America Corp.’s $1.31 billion issue of $25-par series LL non-cumulative 5% preferred shares.

Meanwhile, the bank’s established 6% series GG non-cumulative preferreds were seen improving.

Athene above par

Leading the day’s overall trading, retirement services provider Athene’s new $300 million 5.625% series B fixed-rate perpetual non-cumulative preference shares closed their first day above par.

The preferreds, trading under the temporary symbol “ATHHF,” were seen closing at $25.08 on volume of about 5.2 million shares.

The deal priced late Tuesday.

Rexford weaker

Real estate investment trust Rexford’s recent 5.625% series C cumulative redeemable preferreds finished the session on weaker ground.

The preferreds, trading under the temporary symbol “REXCP,” fell 5 cents to $25.20 with about 315,000 shares trading.

Capital One higher

Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock jumped higher.

The preferreds (NYSE: COFPrI) jumped up 27 cents to close at $24.63 on volume of about 1.2 million shares.

On Monday, the preferreds edged up 1 cent.

Sector peer JPMorgan’s 6% series EE non-cumulative preferreds ended with a small loss.

The preferreds (NYSE: JPMPrC) declined by 1 cent to close at $27.79 with about 449,000 shares trading.

On Monday, the preferreds dropped 16 cents.

Bank of America’s deal

In the primary space, Bank of America said it issued a $1.31 billion offering of $25-par series LL non-cumulative preferred stock with a dividend of 5%.

BofA Securities, Inc. is the bookrunner.

The preferreds are redeemable on or after Sept. 17, 2024 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event at par.

On Tuesday, the preferreds, trading under the temporary symbol “BFALL,” were up 7 cents to $24.92 on volume of about 803,000 shares.

Meanwhile, the bank’s established 6% series GG non-cumulative preferreds were seen improving by the close.

The preferreds (NYSE: BACPrB) added 9 cents to close at $26.71 with about 661,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished trading up by 0.25%, rising from the 0.03% loss from early Tuesday trading.

The iShares US Preferred Stock ETF was up 12 cents to $37.17.

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