Armada Hoffler, Voya sells preferreds; Great Elm prices $25-par notes; Athene lower

By James McCandless

San Antonio, June 11 – The preferred secondary market was broadly lower on Tuesday amid more rumblings in the primary space.

Armada Hoffler Properties, Inc. priced a $55 million offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 6.75%.

Voya Financial, Inc. priced an upsized $300 million offering of $25-par series B fixed-rate reset non-cumulative preferred stock at par with an initial dividend of 5.35%.

Great Elm Capital Corp. sold a $40 million offering of $25-par notes (Egan-Jones: BBB) due June 30, 2024 at par with a coupon of 6.5%.

In the secondary, Athene Holding Ltd.’s new 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares finished lower.

Elsewhere, in utilities, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds also slipped.

Sector peer Spire Inc.’s 5.9% series A cumulative redeemable perpetual preferreds followed the negative trend.

Meanwhile, in finance, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds were active but finished flat.

Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferred stock declined by the close.

Armada’s deal

Armada Hoffler priced $55 million of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 6.75%.

There is an $8.25 million greenshoe.

The offering was announced on Monday.

Jefferies LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

The preferreds are redeemable on or after June 18, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event.

Voya prices

Voya sold an upsized $300 million offering of $25-par series B fixed-rate reset non-cumulative preferred stock at par with an initial dividend of 5.35%.

There is no greenshoe.

The deal, announced Tuesday morning, was upsized from an initial $200 million and came in under talk for an initial dividend between 5.625% and 5.75%.

Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are the joint bookrunners.

The dividend resets after Sept. 15, 2029 and every five years thereafter.

The preferreds are redeemable within 90 days of a ratings agency event at $25.50, within 90 days of a regulatory capital event or on Sept. 15, 2029 or any subsequent reset date at par.

Great Elm’s notes

Great Elm sold a $40 million offering of $25-par notes (Egan-Jones: BBB) due June 30, 2024 at par with a coupon of 6.5%.

There is a $6 million greenshoe.

The deal was announced on Tuesday.

Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are the joint bookrunners. Incapital LLC is a lead manager.

The notes are redeemable on or after June 30, 2021.

Athene lower

Spending another day at the top of the secondary, Athene’s new 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares finished lower.

The preferreds, trading under the temporary symbol “ATHDF,” were down 10 cents to close at $26.00 on volume of about 564,000 shares.

On Monday, the preferreds picked up 15 cents.

Duke slips

Elsewhere, in the utilities space, Duke Energy’s 5.75% series A cumulative redeemable perpetual preferreds also slipped.

The preferreds (NYSE: DUKPrA) fell 6 cents to close at $26.34 with about 474,000 shares trading.

Sector peer Spire’s 5.9% series A cumulative redeemable perpetual preferreds followed the day’s negative trend.

The preferreds (NYSE: SRPrA) lost 2 cents to close at $25.98 on volume of about 278,000 shares.

KeyCorp flat

Meanwhile, in the finance space, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds were relatively active but closed flat.

The preferreds (NYSE: KEYPrK) finished level at $25.77 with about 254,000 shares trading.

Goldman Sachs’ series D floating-rate non-cumulative preferred stock also saw a drop in Tuesday activity.

The preferreds (NYSE: GSPrD) sank 16 cents to close at $19.75 on volume of about 164,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session down by 0.09%, reversing a 0.11% gain in early trading.

The iShares US Preferred Stock ETF was down 7 cents to $36.66.

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