Northwest prices $1,000-par notes; Duke Energy declines; AT&T preferreds diverge

By James McCandless

San Antonio, Sept. 2 – As the week hit the midpoint, the preferred space was pulled in multiple directions.

The primary space saw Northwest Bancshares, Inc. price a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Sept. 15, 2030 with an initial coupon of 4% at par.

Leading the secondary market, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferred stock declined.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock rose while its 5% series A cumulative perpetual preferred stock was under water.

Meanwhile, in the finance space, PNC Financial Services Group, Inc.’s 5.375% series Q non-cumulative perpetual preferred stock closed on an upward trend.

Sector peer JPMorgan Chase & Co.’s 6.1% series AA and 6% series EE non-cumulative preferred stocks were both weighed down.

Elsewhere, retirement name Athene Holding Ltd.’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares picked up steam.

Northwest prices

The Wednesday primary space saw Northwest price a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Sept. 15, 2030 (Kroll: BBB) with an initial coupon of 4% at par.

Piper Sandler & Co. is the bookrunner.

On Sept. 15, 2025, the coupon converts to a floating rate of the three-month SOFR plus 389 basis points.

The notes are redeemable on or after Sept. 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par.

Duke declines

Leading the Wednesday secondary market, Duke Energy’s 5.75% series A cumulative redeemable perpetual preferred stock declined.

The preferreds (NYSE: DUKPrA) were down 18 cents to close at $28.07 on volume of about 316,000 shares.

AT&T diverges

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock was seen rising while its 5% series A cumulative perpetual preferreds spent the session under water.

The series C preferreds (NYSE: TPrC) garnered 11 cents to close at $25.53 with about 247,000 shares trading.

On Tuesday, the preferreds added 5 cents.

The series A preferreds (NYSE: TPrC) chalked off 3 cents to close at $26.68 with about 165,000 shares trading.

PNC up

Meanwhile, in the finance space, PNC’s 5.375% series Q non-cumulative perpetual preferred stock closed the afternoon on an upward trend.

The preferreds (NYSE: PNCPrQ) improved by 1 cent to close at $25.00 on volume of about 186,000 shares.

Sector peer JPMorgan’s 6.1% series AA and 6% series EE non-cumulative preferred stocks were both weighed down.

The series AA preferreds (NYSE: JPMPrG) shaved off 14 cents to close at $25.48 with about 157,000 shares trading.

The series EE preferreds (NYSE: JPMPrC) lost 2 cents to close at $27.94 with about 121,000 shares trading.

Athene gains

Elsewhere, retirement name Athene’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares picked up steam.

The preferreds (NYSE: ATHPrC) shot up 11 cents to close at $27.35 on volume of about 145,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day down by 0.10%, slightly better than the 0.12% drop in early Wednesday trading.

The iShares US Preferred Stock ETF was up 12 cents to $36.64.

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