Morning Commentary: CNB prices preferreds; Ontrak, DiamondRock on deck; Truist gains

By James McCandless

San Antonio, Aug. 20 – The preferred space began Thursday with a push upward as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.14%.

The primary market was met with CNB Financial Corp.’s pricing of a $52.5 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock with a dividend of 7.125%

There is a $7,875,000 greenshoe.

Janney Montgomery Scott LLC and Boenning & Scattergood, Inc. are the bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, Ontrak, Inc. announced plans to price an offering of $25-par series A cumulative perpetual preferred stock.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co. are the bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event or within 120 days after a change of control at par.

DiamondRock Hospitality Co. plans to price an offering of $25-par series A cumulative redeemable preferred stock.

Wells Fargo Securities, LLC, BofA Securities, Inc. and Citigroup Global Markets Inc. are the bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

Leading early secondary trading volume, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was gaining.

The preferreds (NYSE: TFCPrR) were up 8 cents to $26.27 on volume of about 261,000 shares.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock was also being lifted.

The preferreds (NYSE: JPMPrD) were gaining 8 cents to $27.59 with about 38,000 shares trading.

Asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes kicked off the morning with a positive run.

The notes (NYSE: LMHB) were picking up 2 cents to $25.77 on volume of about 78,000 notes.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock was following the early trend.

The preferreds (NYSE: TPrC) were pushing up 4 cents to $25.44 with about 58,000 shares trading.

Sector peer United States Cellular Corp.’s 7.25% senior notes due 2064 were trending up with the rest of the market.

The notes (NYSE: UZC) were adding 3 cents to $25.72 on volume of about 25,000 notes.

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