B. Riley, Brookfield sell preferreds; Wells Fargo lifted; AGNC preferreds decline

By James McCandless

San Antonio, Feb. 10 – The week in the preferred market broke open with positivity across the board.

In primary activity, B. Riley Financial, Inc. priced an upsized $115 million offering of $25-par five-year senior notes with a 6.375% coupon at par.

Also, Brookfield Property Partners LP priced a $250 million offering of $25-par series 3 class A cumulative redeemable perpetual preferred units at par with a dividend of 5.75%.

Leading secondary volume, finance name Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was lifted by the close.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock ended better.

Elsewhere, REIT AGNC Investment Corp.’s new 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock declined.

Natural gas shipper GasLog Partners LP’s 8.625% series A fixed-to-floating rate redeemable perpetual preference units jumped.

Meanwhile, insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock followed the market upward.

B. Riley prices

In primary market activity, B. Riley Financial priced an upsized $115 million offering of $25-par five-year senior notes with a 6.375% coupon at par.

There is a $17.25 million greenshoe.

The deal, announced on Monday morning, was upsized from an initial $50 million.

B. Riley FBR, Inc., Ladenburg Thalmann & Co. Inc., Incapital LLC and William Blair & Co., LLC are the joint bookrunners.

The notes are redeemable on or after Feb. 28, 2021 and prior to Feb. 28, 2022 at $25.75, on or after Feb. 28, 2022 and prior to Feb. 28, 2023 at $25.50, on or after Feb. 28, 2023 and prior to Feb. 29, 2024 at $25.25 or on or after Feb. 29, 2024 at par.

Brookfield’s deal

Also Brookfield Property priced a $250 million offering of $25-par series 3 class A cumulative redeemable perpetual preferred units (BB+) at par with a dividend of 5.75%.

There is a $37.5 million greenshoe.

Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the joint bookrunners.

Dividends are payable on the last day of March, June, September and December, commencing on June 30, 2020.

The preferreds are redeemable on or after March 31, 2025 at par. Prior to that, the preferreds are redeemable after a change in tax law at par, within 90 days after a “Delisting Brookfield Transaction Triggering Event” at par, within 90 days after a change-of-control triggering event or within 120 days after a ratings event at $25.50.

Wells Fargo rises

Leading secondary space volume, financial services name Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock was lifted by the close.

The preferreds (NYSE: WFCPrZ) were up 13 cents to close at $25.55 on volume of about 951,000 shares.

On Friday, the preferreds gained 13 cents.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock ended the session on better footing.

The preferreds (NYSE: COFPrJ) picked up 2 cents to close at $24.94 with about 837,000 shares trading.

On Friday, the preferreds garnered 6 cents.

AGNC down

Elsewhere, real estate investment trust AGNC’s new 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock declined.

The preferreds, trading under the temporary symbol “AINGZ,” shaved off 2 cents to close at $24.92 on volume of about 877,000 shares.

On Friday, the preferreds shed 6 cents.

GasLog jumps

Natural gas shipping name GasLog’s 8.625% series A fixed-to-floating rate redeemable perpetual preference units jumped higher.

The preferreds (NYSE: GLOPPrA) added 35 cents to close at $23.95 with about 280,000 shares trading.

MetLife rises

Meanwhile, insurance company MetLife’s 4.75% series F non-cumulative preferred stock followed the market on an upward path.

The preferreds (NYSE: METPrF) tacked on 8 cents to close at $25.76 on volume of about 252,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day up by 0.10%, improving on a 0.02% loss from early Monday activity.

The iShares US Preferred Stock ETF was up 9 cents to $38.20.

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