U.S. Cellular taps $25-par market; Truist preferreds improve; AT&T under pressure

By James McCandless

San Antonio, Aug. 10 – As a new week opened in the preferred space, the market was carried higher.

In primary activity, United States Cellular Corp. priced a $500 million offering of $25-par senior notes due Sept. 1, 2069 with a coupon of 6.25%.

At the top of the secondary, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock improved.

Elsewhere in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds were active but unchanged.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities pushed upward.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock was under pressure.

Meanwhile, asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 ended the afternoon rising.

U.S. Cellular prices

In primary activity, U.S. Cellular priced a $500 million offering of $25-par senior notes due Sept. 1, 2069 (Ba1/BB/BB+) with a coupon of 6.25%.

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

The lead manager is Citigroup Global Markets Inc.

The notes are redeemable on or after Sept. 1, 2025 at par.

Truist improves

At the top of Monday’s secondary market, Truist’s 4.75% series R non-cumulative perpetual preferred stock improved.

The preferreds (NYSE: TFCPrR) were up 7 cents to close at $25.40 on volume of about 719,000 shares.

On Friday, the preferreds shaved off 4 cents.

Elsewhere in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferreds were active but unchanged as the session ended.

The preferreds (NYSE: WFCPrZ) closed level at $24.70 with about 365,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities pushed upward.

The preferreds (NYSE: ALLYPrA) moved up 26 cents to close at $24.30 on volume of about 206,000 shares.

On Friday, the preferreds dropped 19 cents.

AT&T down

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock was under pressure at the end of the activity.

The preferreds (NYSE: TPrC) declined by 3 cents to close at $24.99 with about 223,000 shares trading.

Legg Mason rises

Meanwhile, asset manager Legg Mason’s 5.45% junior subordinated notes due 2056 ended the afternoon rising.

The notes (NYSE: LMHB) tacked on 4 cents to close at $25.16 on volume of about 183,000 shares.

On Friday, the preferreds garnered 5 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day up by 0.29%, better than the 0.06% gain from early Monday trading.

The iShares US Preferred Stock ETF was up 13 cents to $36.17.

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