Morning Commentary: $25-par market bustles; Brighthouse off; Pennsylvania REIT lower

By James McCandless

San Antonio, May 27 – The preferred space started with bustling primary activity as the Wells Fargo Hybrid & Preferred Securities Financial index opened up by 0.23% on Wednesday.

In primary activity, Fortress Biotech, Inc. priced a $10 million add-on to its 9.375% series A perpetual preferred stock at $18.00 on Tuesday. The preferreds have a $25.00 liquidation preference.

There is a $1.5 million greenshoe.

Benchmark Co. and ThinkEquity are the bookrunners.

The securities will have the same terms as the 2,054,917 currently outstanding shares of the series A preferred stock.

The preferreds are redeemable on or after Dec. 15, 2022 at par plus accrued dividends.

On Wednesday morning, the preferreds (Nasdaq: FBIOP) were down 47 cents to $17.89 on volume of about 157,000 shares.

Also, Huntington Bancshares Inc. announced plans to price an offering of $1,000-par series F non-cumulative perpetual preferred stock at par.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, UBS Securities LLC and Huntington Securities, Inc. are the joint bookrunners.

On Oct. 15, 2030, the dividend resets to a rate of the 10-year Treasury plus a spread.

The preferreds are redeemable on or after Oct. 15, 2030 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Truist Financial Corp. plans to price an offering of $1,000-par series P fixed-rate reset non-cumulative perpetual preferred stock.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. are the bookrunners.

Also coming down the pipeline, Pinnacle Financial Partners, Inc. plans to sell an offering of $25-par series B fixed-rate non-cumulative perpetual preferred stock.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley and Raymond James & Associates, Inc. are the joint bookrunners.

Leading in the secondary market, insurance name Brighthouse Financial Inc.’s recent 6.75% series B non-cumulative perpetual preferred stock was moving along a negative trend.

The preferreds (Nasdaq: BHFAO) were shaving off 1 cent to $25.35 with about 158,000 shares trading.

Meanwhile, Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferreds were also under pressure.

The preferreds (NYSE: PEIPrC) were losing 5 cents to $6.05 on volume of about 80,000 shares.

In the telecom space, AT&T, Inc.’s 4.75% series C perpetual preferred stock was receiving a boost Wednesday morning.

The preferreds (NYSE: TPrC) were gaining 31 cents to $23.46 with about 66,000 shares trading.

Asset manager Annaly Capital Management, Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferred stock was positive.

The preferreds (NYSE: NLYPrF) were picking up 1 cent to $22.04 on volume of about 59,000 shares.

© 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.