Preferred stock tone improves; primary quiet; EPR gains; Seritage, Arch Capital dip

By Cristal Cody

Tupelo, Miss., Jan. 5 – Preferred stocks stayed positive over Friday’s session amid a lack of issuance to start the new year.

The Wells Fargo Hybrid and Preferred Securities index closed up 13 basis points.

The U.S. iShares Preferred Stock ETF rose 3 bps.

Preferred stock issuers have stayed to the sidelines since the year started after primary action slowed in mid-December.

New issues have been mixed in trading.

EPR Properties’ 5.75% series G cumulative redeemable perpetual preferred shares (NYSE: EPRPrG) gained 4 cents, or 0.16%, on the day to $25.14.

The Kansas City, Mo.-based real estate investment trust sold $150 million, or 6 million shares, of the $25-par preferreds on Nov. 20.

Seritage Growth Properties’ 7% series A cumulative redeemable perpetual preferred stock (NYSE: SRGPrA) was up a nickel to start the day but closed down 10 cents, or 0.41%, at $24.40.

The real estate investment trust formed by Hoffman Estates, Ill.-based Sears Holdings sold $70 million, or 2.8 million shares, of the $25-par preferreds on Dec. 7.

Arch Capital Ltd.’s reopened depositary shares that represent a 1/1,000th interest in its 5.45% series F non-cumulative perpetual preferred shares (Nasdaq: ACGLO) fell 7 cents, or 0.28%, to $25.08 on Friday.

The company priced a $100 million, or 4 million shares, add-on to the issue on Nov. 29 at $25.16 per depositary share. The shares have a liquidation preference of $25.00 per depositary share.

The Hamilton, Bermuda, insurance, reinsurance and mortgage insurance provider originally issued $230 million of the securities on Aug. 17. The total outstanding now is $330 million.

Barclays active

Elsewhere, Barclays Bank plc’s 8.125% series 5 non-cumulative callable dollar preference shares (NYSE: BCSPrD) were among the more actively traded shares during the session. The preferreds (Ba2/BB) fell 8 cents, or 0.3%, to $26.27.

The preferreds were sold as depositary shares and have a liquidation preference of $25.00 per share.

Distributions are payable quarterly on March 15, June 15, Sept. 15 and Dec. 15 to holders of record.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.