Dime preferreds eyed; Capital One ends below par; MetLife improves

By James McCandless

San Antonio, Jan. 29 – The preferred market saw improvements across the board with a focus on newer issues on Wednesday.

In primary market movement, Dime Community Bancshares, Inc. priced $65.2 million of $25-par series A fixed-rate non-cumulative perpetual preferred stock at par with a dividend of 5.5%.

At the top of the secondary, Capital One Financial Corp.’s new $1.25 billion 4.8% series J fixed-rate non-cumulative perpetual preferred stock closed its first day under par.

Its established 5% series I fixed-rate non-cumulative perpetual preferred stock was relatively active but unchanged.

Elsewhere in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock dipped.

Sector peer Morgan Stanley’s 4.875% series L non-cumulative preferreds moved into a better position by the close.

Insurance name MetLife, Inc.’s 4.75% series F non-cumulative preferred stock continued to track higher.

Meanwhile, REIT UMH Properties, Inc.’s 6.375% series D cumulative redeemable preferred stock followed the market trend.

Dime prices

In more primary market movement this week, Dime priced $65.2 million of $25-par series A fixed-rate non-cumulative perpetual preferred stock (//BB-) at par with a dividend of 5.5%.

There is a $9.78 million greenshoe.

Raymond James & Associates, Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

Dividends are payable on Feb. 15, May 15, Aug. 15, and Nov. 15, commencing on May 15.

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

Capital One under par

At the top of secondary trading, Capital One’s new $1.25 billion 4.8% series J fixed-rate non-cumulative perpetual preferred stock closed its first day under par.

The preferreds, trading under the temporary symbol “CPONZ,” closed at $24.92 on volume of about 10.7 million shares.

The deal priced on Tuesday.

Its more established 5% series I fixed-rate non-cumulative perpetual preferred stock was relatively active but unchanged by the end of the afternoon.

The preferreds (NYSE: COFPrI) finished level at $25.49 on volume of about 402,000 shares.

On Tuesday, the preferreds picked up 2 cents.

Wells Fargo dips

Elsewhere in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock dipped as the session ended.

The preferreds (NYSE: WFCPrZ) shaved off 4 cents to close at $25.21 with about 1.3 million shares trading.

On Tuesday, the preferreds garnered 4 cents.

Sector peer Morgan Stanley’s 4.875% series L non-cumulative preferreds moved into a better position by the close.

The preferreds (NYSE: MSPrL) improved by 2 cents to close at $25.37 on volume of about 447,000 shares.

MetLife higher

Insurance name MetLife’s 4.75% series F non-cumulative preferred stock continued to track higher this week.

The preferreds (NYSE: METPrF) garnered 14 cents to close at $25.67 with about 774,000 shares trading.

On Tuesday, the preferreds leaped up 16 cents.

UMH adds

Meanwhile, real estate investment trust UMH Properties’ 6.375% series D cumulative redeemable preferred stock followed the market trend.

The preferreds (NYSE: UMHPrD) rose 3 cents to close at $25.05 on volume of about 377,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index moved up 0.22% by the end of the day, almost doubling a 0.12% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was up 8 cents to $38.14.

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