B. Riley sells $100 million $25-par notes; Bank of America preferreds up; Athene jumps

By James McCandless

San Antonio, Sept. 18 – Preferreds in the U.S. market trended higher in trading on Wednesday.

B. Riley Financial, Inc. priced an upsized $100 million offering of $25-par seven-year senior notes with a coupon of 6.5%.

Leading secondary volume, Bank of America Corp.’s 5% series LL and series GG non-cumulative preferred stock were both higher.

Elsewhere in finance, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock also saw a better day.

Sector peer JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferreds followed the trend higher.

Retirement services name Athene Holding Ltd.’s new 5.625% series B fixed-rate perpetual non-cumulative preference shares jumped higher.

Insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferreds were pushed into a better position.

B. Riley prices

B. Riley priced an upsized $100 million offering of $25-par seven-year senior notes with a coupon of 6.5%.

There is a $15 million greenshoe.

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

Bookrunners were B. Riley FBR, Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and Incapital LLC.

The notes are redeemable on or after Sept. 30, 2022 at $25.50, on or after Sept. 30, 2023 at $25.25 and on or after Sept. 30, 2024 at par.

Bank of America positive

Leading activity in the secondary, Bank of America’s 5% series LL and series GG non-cumulative preferred stock were both positive at the close.

The series LL preferreds (NYSE: BACPrN) were up 7 cents to close at $24.99 on volume of about 1.4 million shares.

On Tuesday, the preferreds picked up 7 cents.

The series GG preferreds (NYSE: BACPrB) were up 10 cents to close at $26.81 on volume of about 522,000 shares.

On Tuesday, the preferreds added 9 cents.

Elsewhere in the banking and finance space, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock also saw a better day.

The preferreds (NYSE: COFPrI) gained 3 cents to close at $24.68 with about 688,000 shares trading.

On Tuesday, the preferreds shot up 27 cents.

Sector peer JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferreds followed the overarching trend.

The series DD preferreds (NYSE: JPMPrD) rose 1 cent to close at $27.51 on volume of about 586,000 shares.

The series EE preferreds (NYSE: JPMPrC) garnered 11 cents to close at $27.90 on volume of about 409,000 shares.

On Tuesday, the preferreds declined by 1 cent.

Athene jumps

Meanwhile, Athene’s new 5.625% series B fixed-rate perpetual non-cumulative preference shares jumped higher.

The preferreds, trading under the temporary symbol “ATHHF,” improved by 20 cents to $25.28 with about 818,000 shares trading.

On Tuesday, its first trading day, the preferreds landed above par.

Allstate better

Insurance provider Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferreds were pushed into a better position at the end of the session.

The preferreds (NYSE: ALLPrH) added 16 cents to close at $25.85 on volume of about 286,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index wrapped up the day up by 0.25%, doubling the 0.12% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was up 10 cents to $37.27.

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