Morning Commentary: United Community Banks, Dime on tap; Atlantic Union under par

By James McCandless

San Antonio, June 3 – The preferred space kicked off Wednesday with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.14%.

The primary market saw United Community Banks, Inc. announce plans to price an offering of $25-par series I non-cumulative preferred stock.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Sept. 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par.

The issuer plans to use the proceeds for general corporate purposes.

Also, Dime Community Bancshares, Inc. plans to sell more of its $25-par 5.5% series A fixed-rate non-cumulative perpetual preferred stock.

Raymond James & Associates, Inc. is the bookrunner.

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

Dime plans to use the proceeds for general corporate purposes.

Leading early secondary activity, Atlantic Union Bankshares Corp.’s new $150 million 6.875% series A perpetual non-cumulative preferred stock was seen trading under par.

The preferreds, trading under the temporary symbol “AUBKL,” were spotted at $24.98 on volume of about 1.1 million shares.

Elsewhere in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock was under pressure.

The preferreds (NYSE: TFCPrO) were declining by 6 cents to $25.39 with about 72,000 shares trading.

Sector peer Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds were pushing higher.

The preferreds (NYSE: WFCPrQ) were gaining 14 cents to $25.36 on volume of about 68,000 shares.

Meanwhile, asset manager Medley LLC’s 7.25% senior notes due 2024 were seeing a spike as the session began.

The notes (NYSE: MDLQ) were jumping up $1.48 to $3.36 with about 132,000 notes trading.

Real estate investment trust AG Mortgage Investment Trust, Inc.’s 8% series C fixed-to-floating rate cumulative perpetual redeemable preferred shares were also being lifted.

The preferreds (NYSE: MITTPrC) were adding 53 cents to $10.47 on volume of about 51,000 shares.

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