Four new issues price; Athene moves higher; Citigroup preferreds under water

By James McCandless

San Antonio, June 16 – As the primary market saw more deals in the pipeline, most top traders in the preferred secondary were pushing upward.

In a busy primary space, Office Properties Income Trust priced a $150 million offering of $25-par 30-year senior notes with a coupon of 6.375% at par.

Also, Triumph Bancorp, Inc. priced a $45 million offering of $25-par series C fixed-rate non-cumulative perpetual preferred stock with a dividend of 7.125% at par.

NBT Bancorp Inc. priced a $100 million offering of $1,000-par fixed-to-floating rate subordinated notes due July 1, 2030 at par.

Truist Financial Corp. priced a $1 billion offering of series Q fixed-rate reset non-cumulative perpetual preferred stock with a dividend of 5.1% at par.

As the volume leader, Athene Holding Ltd.’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares moved higher.

Elsewhere, in the finance space, Citigroup Capital XIII’s 7.875% fixed-to-floating trust preferred securities were under water.

Sector peer JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock picked up steam by the end of the afternoon.

Utilities provider Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds improved.

Meanwhile, REIT MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock leaped.

Office Properties prices

In a busy primary space, Office Properties priced a $150 million offering of $25-par 30-year senior notes (Baa3/BBB-) with a coupon of 6.375% at par.

There is a $22.5 million greenshoe.

BofA Securities Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., UBS Securities LLC and Wells Fargo Securities LLC are the bookrunners.

The notes are callable on or after June 23, 2025 at par.

Triumph’s deal

Also, Triumph Bancorp said it priced a $45 million offering of $25-par series C fixed-rate non-cumulative perpetual preferred stock with a dividend of 7.125% at par

There is a $6.75 million greenshoe.

B. Riley FBR, Inc., D.A. Davidson & Co., Janney Montgomery Scott LLC and Oppenheimer & Co. Inc. are the bookrunners.

The preferreds are redeemable on or after June 30, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

NBT prices

NBT priced a $100 million offering of $1,000-par fixed-to-floating rate subordinated notes due July 1, 2030 (Kroll: BBB) at par.

Keefe, Bruyette & Woods, Inc. and Piper Sandler & Co. are the bookrunners.

The dividend is fixed until July 1, 2025, then converts to a floating rate of the three-month SOFR plus 485 basis points.

The notes are redeemable on or after July 1, 2025 at par. Prior to that, the notes are redeemable upon the occurrence of a tax event or tier 2 capital event.

Trusit’s deal

Rounding out the quartet, Truist priced a $1 billion offering of series Q fixed-rate reset non-cumulative perpetual preferred stock (Baa2/BBB-/BBB/DBRS: BBBH) with a dividend of 5.1% at par.

RBC Capital Markets, LLC, Goldman Sachs & Co. LLC and SunTrust Robinson Humphrey, Inc. are the bookrunners.

The dividend resets on Sept. 30, 2030 and every 10 years thereafter at the rate of the 10-year Treasury plus 434.9 basis points.

The preferreds are redeemable within six months before each reset date. The preferreds are also redeemable within 90 days after a regulatory capital treatment event.

Athene higher

As Tuesday’s secondary volume leader, Athene’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares moved to a higher position.

The preferreds (NYSE: ATHPrC) were up 27 cents to close at $25.15 on volume of about 559,000 shares.

Citigroup under

Elsewhere, in the finance space, Citigroup’s 7.875% fixed-to-floating trust preferred securities were under water.

The preferreds (NYSE: CPrN) shaved off 10 cents to close at $26.98 with about 494,000 shares trading.

Sector peer JPMorgan’s 4.75% series GG non-cumulative preferred stock picked up steam by the end of the afternoon.

The preferreds (NYSE: JPMPrJ) tacked on 31 cents to close at $25.01 on volume of about 394,000 shares.

Duke Energy better

Utilities provider Duke Energy’s 5.75% series A cumulative redeemable perpetual preferreds improved as the session ended.

The preferreds (NYSE: DUKPrA) improved by 12 cents to close at $27.17 with about 434,000 shares trading.

MFA leaps

Meanwhile, real estate investment trust MFA Financial’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock leaped upward.

The preferreds (NYSE: MFAPrC) jumped up $2.17 to close at $18.20 on volume of about 407,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index settled the day up by 0.93%, improving on a 0.83% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was up 37 cents to $35.00.

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