Southern Co. sells $25-par notes; Healthcare Trust on deck; Public Storage preferreds lower

By James McCandless

San Antonio, Sept. 15 – Moving through Tuesday, the preferred market was largely positive though top traders skewed lower.

Coming down the primary pipeline, Southern Co. sold $750 million of $25-par series 2020C junior subordinated notes due Oct. 15, 2060.

The company’s established 6.25% series 2015A junior subordinated notes due 2075 drifted downward.

Also, Healthcare Trust, Inc. plans to sell up to $15 million more of its series A cumulative redeemable perpetual preferred stock with a dividend of 7.375%.

As the volume leader, REIT Public Storage’s 4.625% series L cumulative preferred shares were pushed to a lower position.

Meanwhile, diversified builder Brookfield Infrastructure Partners LP’s new $200 million 5.125% series 13 class A preferred limited partnership units ended above par.

Elsewhere, in the finance space, Capital One Financial Corp.’s new 4.625% series K fixed-rate non-cumulative perpetual preferreds declined.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock improved.

Southern Co. prices

Coming down the primary pipeline Southern Co. sold $750 million of $25-par series 2020C junior subordinated notes due Oct. 15, 2060 (Baa3/BBB/BBB-).

The notes can be redeemed at par plus interest after Oct. 15, 2025.

Upon a ratings change, the notes can be redeemed at 102% of par plus interest or at par if there is a change in tax law before Oct. 15, 2025.

There is an optional deferral of up to 40 consecutive quarterly periods per deferral.

Wells Fargo Securities, LLC is the global coordinator.

The company’s established 6.25% series 2015A junior subordinated notes due 2075 drifted downward as the afternoon ended.

The notes (NYSE: SOJA) shaved off 6 cents to close at $25.36 on volume of about 655,000 shares.

Healthcare Trust

Also, Healthcare Trust announced its plans to sell up to $15 million more of its series A cumulative redeemable perpetual preferred stock with a dividend of 7.375%.

As of June 30, there were 1.61 million shares outstanding.

B. Riley Principal Capital, Inc. is the bookrunner.

The preferreds are redeemable on or after Dec. 11, 2024 at par. Prior to that, the preferreds are redeemable after a delisting event at par or within 120 days after a change of control at par.

Public Storage down

As the volume leader, real estate investment trust Public Storage’s 4.625% series L cumulative preferred shares were pushed to a lower position.

The preferreds (NYSE: PSAPrL) were down 3 cents to close at $26.78 with about 904,000 shares trading.

Brookfield above par

Meanwhile, diversified builder Brookfield Infrastructure’s new $200 million 5.125% series 13 class A preferred limited partnership units ended their first trading day above par.

The preferreds, trading under the temporary symbol “BIPPF,” closed at $25.07 on volume of about 742,000 shares.

The deal priced on Monday.

Capital One declines

Elsewhere, in the finance space, Capital One’s new 4.625% series K fixed-rate non-cumulative perpetual preferreds declined.

The preferreds, trading under the temporary symbol “COFKL,” gave back 10 cents to close at $24.25 with about 409,000 shares trading.

On Monday, the preferreds dived 32 cents.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock improved by the end of activity.

The preferreds (NYSE: WFCPrZ) tacked on 3 cents to close at $24.97 on volume of about 368,000 shares.

On Monday, the preferreds pushed up 11 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the session up by 0.29%, improving on the 0.20% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was up 15 cents to $36.62.

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