Prudential floods primary space; Farmer Mac boosted; AT&T preferreds gain ground

By James McCandless

San Antonio, Aug. 18 – At the end of Tuesday’s activity, the preferred space was seen making positive strides.

In the primary space, Prudential Financial, Inc. priced an $800 million offering of $1,000-par fixed-to-fixed reset rate junior subordinated notes due Oct. 1, 2050 with an initial coupon of 3.7% and $500 million offering of $25-par junior subordinated notes due Sept. 1, 2060 with a dividend of 4.125%.

As the volume leader, rural lender Federal Agricultural Mortgage Corp.’s new 5.25% series F non-cumulative perpetual preferred stock was boosted.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock gained ground by the end of the afternoon.

Meanwhile, in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved.

Sector peer JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds were slipping, going against the trend.

Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock also received a late-session bump.

Prudential prices

In the primary space, Prudential priced an $800 million offering of $1,000-par fixed-to-fixed reset rate junior subordinated notes due Oct. 1, 2050.

Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Mizuho Securities USA LLC are the bookrunners.

Coupons will be payable on April 1 and Oct. 1, starting on April 1, 2021.

On Oct. 1, 2030 and every five years thereafter, the coupon coverts to a fixed rate equal to Treasuries plus 303.5 basis points.

At the same time, the company sold $500 million of $25-par junior subordinated notes due Sept. 1, 2060 with a dividend of 4.125%.

Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC are the bookrunners.

Coupons will be payable on March 1, June 1, Sept. 1 and Dec. 1, starting on Dec. 1, 2020.

Farmer Mac boosted

As the day’s volume leader, rural lender Farmer Mac’s new 5.25% series F non-cumulative perpetual preferred stock was boosted.

The preferreds, trading under the temporary symbol “AGMFP,” were up 39 cents to close at $25.57 on volume of about 763,000 shares.

On Monday, the preferreds garnered 16 cents.

AT&T gains

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock gained ground by the end of the afternoon.

The preferreds (NYSE: TPrC) reached up 21 cents to close at $25.35 with about 274,000 shares trading.

Capital One improves

Meanwhile, in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock improved.

The preferreds (NYSE: COFPrJ) picked up 28 cents to close at $23.94 on volume of about 271,000 shares.

On Monday, the preferreds tacked on 6 cents.

Sector peer JPMorgan’s 6% series EE non-cumulative preferreds were slipping, going against the prevailing trend.

The preferreds (NYSE: JPMPrC) shaved off 1 cent to close at $28.03 with about 269,000 shares trading.

Truist’s 4.75% series R non-cumulative perpetual preferred stock also received a late-session positive bump.

The preferreds (NYSE: TFCPrR) were pushed up 18 cents to close at $26.03 on volume of about 231,000 shares.

On Monday, the preferreds chalked off 2 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day up by 0.47%, shooting past the 0.10% rise from early Tuesday activity.

The iShares US Preferred Stock ETF was up 7 cents to $36.56.

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