Preferreds gain; DTE Energy prices; MB Financial on tap; Ashford softens; AT&T flat

By Cristal Cody

Tupelo, Miss., Nov. 13 – Preferred stocks opened mixed on Monday but ended the day mostly better with pricing action also seen during the session.

The Wells Fargo Hybrid and Preferred Securities index closed 15 basis points better. The index was up 4 bps at the start of the day.

The U.S. iShares Preferred Stock ETF, which was down 3 bps over the morning, climbed 5 bps.

DTE Energy Co. priced $400 million of $25-par series E 5.25% 60-year junior subordinated debentures.

MB Financial, Inc. plans to price series C non-cumulative perpetual preferred stock.

No pricing details were seen on MB Financial’s offering by the time the market closed, a source said.

In trading on Monday, Ashford Hospitality Trust Inc.’s new 7.5% series I perpetual cumulative preferred stock recovered some early morning losses but remained off 10 cents, or 0.4%, to $24.60. The preferreds were seen 15 cents weaker in mid-morning trading.

The trust sold $135 million, or 5.4 million shares, of the preferred stock on Wednesday. The stock was freed to trade in the pink sheets under the temporary symbol “ASHFP.”

The Dallas-based real estate investment trust plans to list the preferreds on the New York Stock Exchange under the ticker symbol “AHTPrI.”

Rexford Industrial Realty, Inc.’s 5.875% series B cumulative redeemable preferred shares (//BB) that priced on Nov. 6 closed up 4 cents, or 0.16%, to $25.05 in over-the-counter trading under the temporary symbol “RXXFP.”

The company sold $75 million, 3 million shares, in the offering.

The Los Angeles-based real estate investment trust plans to list the preferreds on the NYSE under the ticker symbol “REXRPrB.”

AT&T Inc.’s 5.35% $25-par global notes due Nov. 1, 2066 (NYSE: TBB) were unchanged on the day at $25.29.

The Dallas-based telecommunications company sold $1.15 billion of the notes on Oct. 25.

DTE Energy sells $400 million

DTE Energy priced $400 million of $25-par 2017 series E 5.25% junior subordinated debentures due Dec. 1, 2077 (Baa2/BBB-/BBB-) on Monday, according to an FWP filed with the Securities and Exchange Commission.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The deal does not have an over-allotment option.

Proceeds will be used to repay short-term borrowings and for general corporate purposes.

The energy company is based in Detroit.

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