First Interstate on tap; Wintrust preferreds better; AT&T declines

By James McCandless

San Antonio, May 11 – The preferred space began a new week giving back some of last week’s gains, though top traders varied.

In the primary market, First Interstate BancSystem, Inc. said it plans to price a $50 million to $100 million offering of fixed-to-floating rate subordinated notes due 2030.

On top of secondary activity, Wintrust Financial Corp.’s new 6.875% series E fixed-rate reset non-cumulative perpetual preferred stock saw better levels.

Elsewhere in the finance space, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities finished with a modest gain.

Sector peer Bank of America Corp.’s 5% series LL non-cumulative preferred stock trailed by the end of the afternoon.

Telecom services company AT&T Inc.’s 4.75% series C perpetual preferred stock declined with the rest of the market.

Meanwhile, REIT New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock dropped.

First Interstate’s deal

In the primary market, First Interstate announced plans to price a $50 million to $100 million offering of fixed-to-floating rate subordinated notes due 2030 (Kroll: BBB).

Piper Sandler & Co. is the bookrunner.

The notes will have a coupon for an initial fixed-rate period and will convert on a date in 2025 to a floating rate based on a spread to SOFR.

The notes will be callable after five years.

Wintrust better

On top of Monday’s secondary activity, Wintrust’s new 6.875% series E fixed-rate reset non-cumulative perpetual preferred stock saw better levels.

The preferreds, trading under the temporary symbol “WTFNL,” were up 3 cents to close at $25.09 on volume of about 396,000 shares.

On Friday, the preferreds tacked on 4 cents.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities also finished with a modest gain.

The preferreds (NYSE: ALLYPrA) gained 6 cents to close at $22.14 with about 339,000 shares trading.

On Friday, the preferreds improved by 6 cents.

Sector peer Bank of America’s 5% series LL non-cumulative preferred stock trailed by the end of the afternoon.

The preferreds (NYSE: BACPrN) chalked off 3 cents to close at $24.95 on volume of about 289,000 shares.

On Friday, the preferreds rose 1 cent.

AT&T off

Telecom services company AT&T’s 4.75% series C perpetual preferred stock declined with the rest of the market.

The preferreds (NYSE: TPrC) dropped 28 cents to close at $23.11 with about 352,000 shares trading.

New Residential drops

Meanwhile, real estate investment trust New Residential’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock dropped.

The preferreds (NYSE: NRZPrC) declined by 46 cents to close at $17.24 on volume of about 279,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session down by 0.03%, falling back down from a 0.21% rise from early Monday trading.

The iShares US Preferred Stock ETF was down 1 cent to $34.25.

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