Great Western plans $25-par notes; Truist preferreds better; AGNC rises

By James McCandless

San Antonio, June 1 – At the beginning of a new week, the preferred market carried over last week’s positive push.

In the primary market, Great Western Bancorp, Inc. plans to price a $50 million offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Leading in the secondary, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock moved to better levels.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock improved.

Meanwhile, REIT AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferred stock rose.

Asset manager Annaly Capital Management, Inc.’s 6.75% series I fixed-to-floating rate cumulative redeemable preferred stock went unchanged while the 6.95% series F fixed-to-floating rate cumulative redeemable preferreds gained ground.

Elsewhere, telecom services name AT&T, Inc.’s 4.75% series C perpetual preferred stock closed the day pushing up.

Great Western on tap

In the Monday primary market, Great Western announced plans to price a $50 million offering of $1,000-par fixed-to-floating rate subordinated notes (Kroll: BBB) due 2030.

Piper Sandler & Co. is the bookrunner.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable if a change in law prevents the company from deducting interest from the notes, a tier 2 capital event or if the company is required to register as an investment company at par.

Truist better

Leading the activity in the secondary, Truist’s 5.25% series O non-cumulative perpetual preferred stock moved to better levels.

The preferreds (NYSE: TFCPrO) were up 21 cents to close at $25.61 on volume of about 313,000 shares.

On Friday, the preferreds picked up 20 cents.

Elsewhere in the finance space, JPMorgan’s 4.75% series GG non-cumulative preferred stock improved as the session ended.

The preferreds (NYSE: JPMPrJ) garnered 5 cents to close at $24.85 with about 181,000 shares trading.

On Friday, the preferreds added 6 cents.

AGNC rises

Meanwhile, real estate investment trust AGNC’s 6.5% series E fixed-to-floating rate cumulative redeemable preferred stock rose.

The preferreds (Nasdaq: AGNCO) tacked on 15 cents to close at $22.50 on volume of about 244,000 shares.

Annaly mixed

Asset manager Annaly Capital’s 6.75% series I fixed-to-floating rate cumulative redeemable preferred stock was relatively active though remained unchanged while the 6.95% series F fixed-to-floating rate cumulative redeemable preferreds gained ground.

The series I preferreds (NYSE: NLYPrI) held level to close at $21.83 with about 209,000 shares trading.

The series F preferreds (NYSE: NLYPrF) shot up 10 cents to close at $21.87 with about 200,000 shares trading.

AT&T adds

Elsewhere, telecom services provider AT&T’s 4.75% series C perpetual preferred stock closed the day pushing up.

The preferreds (NYSE: TPrC) improved by 6 cents to close at $23.79 on volume of about 198,000 shares.

On Friday, the preferreds were lifted 19 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the afternoon up by 0.26%, climbing higher than the 0.05% gain from early Monday trading.

The iShares US Preferred Stock ETF was up 3 cents to $35.00.

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