Banner $1,000-par notes price; Ally Financial preferreds rise; Public Storage improves

By James McCandless

San Antonio, June 25 – In the back half of the week, the preferred market finished the session with a positive push.

In the primary space, Banner Corp. priced a $100 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes on Thursday with an initial coupon of 5% at par.

On top of the session’s secondary activity, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities rose.

Elsewhere in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferreds were lifted.

REIT Public Storage’s 4.625% series L cumulative preferred shares ended the afternoon with an improvement.

Sector peer MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock shot higher.

Meanwhile, retirement services name Athene Holding Ltd.’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares tracked upward.

Banner prices

In the primary space, Banner announced that it priced a $100 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes (Kroll: BBB) with an initial coupon of 5% at par.

BofA Securities, Inc. and Piper Sandler & Co. are the bookrunners.

The coupon is fixed until June 30, 2025, then converts to a floating rate of the three-month SOFR plus 489 basis points.

The notes are redeemable on or after June 30, 2025 at par. Prior to that, they are redeemable within 90 days after a tax event, a tier 2 capital event or if the company is required to register as an investment company.

Ally Financial rises

On top of the Thursday session’s secondary activity, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities rose.

The preferreds (NYSE: ALLYPrA) were up 56 cents to close at $22.95 on volume of about 546,000 shares.

Elsewhere in the finance space, Truist Financial’s 5.25% series O non-cumulative perpetual preferreds were lifted.

The preferreds (NYSE: TFCPrO) garnered 12 cents to close at $25.92 with about 327,000 shares trading.

On Wednesday, the preferreds declined by 25 cents.

Public Storage up

Real estate investment trust Public Storage’s 4.625% series L cumulative preferred shares ended the afternoon with an improvement.

The preferreds (NYSE: PSAPrL) picked up 10 cents to close at $25.10 on volume of about 385,000 shares.

On Wednesday, the preferreds were docked 9 cents.

Sector peer MFA Financial’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock shot higher.

The preferreds (NYSE: MFAPrC) were lifted 24 cents to close at $17.57 with about 258,000 shares trading.

Athene gains

Meanwhile, retirement services provider Athene’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares tracked upward.

The preferreds (NYSE: ATHPrC) rose 25 cents to close at $25.40 on volume of about 281,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day up by 0.10%, reversing a 0.12% dip in early Thursday trading.

The iShares US Preferred Stock ETF was down 5 cents to $34.65.

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