U.S. Bancorp taps $25-par market; Sachem on tap; UMH preferreds better

By James McCandless

San Antonio, Oct. 20 – The preferred space ended the Tuesday session on mixed ground as volume leaders trended higher.

In primary movements, U.S. Bancorp priced a $500 million offering of $25-par series L non-cumulative perpetual preferred stock with a dividend of 3.75% at par.

Also, Sachem Capital Corp. plans to price an offering of $25-par notes due Sept. 30, 2025 with a coupon of 7.75%.

Leading secondary market activity, REIT UMH Properties, Inc.’s 6.375% series D cumulative redeemable preferred stock ended better.

Sector peer New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock was lifted.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds lost ground.

Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved.

Also, AT&T, Inc.’s 4.75% series C perpetual preferred stock capped the afternoon on the positive side.

U.S Bancorp prices

In Tuesday primary movements, U.S. Bancorp priced a $500 million offering of $25-par series L non-cumulative perpetual preferred stock (A3/BBB/BBB+/DBRS: A) with a dividend of 3.75% at par.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BofA Securities, Inc., RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Jan. 15, 2026 at par. Prior to that, the preferreds are redeemable after a regulatory capital treatment event.

Sachem on deck

Also, Sachem Capital plans to price an offering of $25-par notes due Sept. 30, 2025 with a coupon of 7.75%.

The notes will rank equally and form a single series with the $14,363,750 aggregate principal amount of 7.75% notes due 2025 that were issued in September.

Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are the bookrunners.

The notes are redeemable on or after Sept. 4, 2022 at par.

UMH better

Leading the Tuesday secondary market activity, real estate investment trust UMH’s 6.375% series D cumulative redeemable preferred stock ended the day in a better position.

The preferreds (NYSE: UMHPrD) were up 3 cents to close at $24.77 on volume of about 428,000 shares.

Sector peer New Residential’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock was lifted.

The preferreds (NYSE: NRZPrC) gained 8 cents to close at $18.58 with about 158,000 shares trading.

Wells Fargo loses

Meanwhile, in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferreds lost ground.

The preferreds (NYSE: WFCPrZ) were docked 3 cents to close at $25.26 on volume of about 288,000 shares.

Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved as the session came to a close.

The preferreds (NYSE: COFPrJ) moved up 7 cents to close at $24.88 with about 184,000 shares trading.

On Monday, the preferreds shed 3 cents.

AT&T up

Also, telecom services provider AT&T’s 4.75% series C perpetual preferred stock capped the afternoon on the positive side.

The preferreds (NYSE: TPrC) rose 3 cents to close at $25.53 on volume of about 158,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished the afternoon down by 0.02%, better than the 0.04% dip from early Tuesday trading.

The iShares US Preferred Stock ETF was up 23 cents to $36.84.

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