Morning Commentary: CNB, Park National, Enstar on deck; Argo improves; Quest dips

By James McCandless

San Antonio, Aug. 17 – As a new week opened in the preferred space, positivity continued to reign as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.24%.

Leading off the week’s primary market, CNB Financial Corp. announced plans to price an offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock.

Janney Montgomery Scott LLC and Boenning & Scattergood, Inc. are the bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, Park National Corp. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Piper Sandler & Co. is the bookrunner.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years and on each coupon payment date 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.

Enstar Group Ltd. plans to price an offering of $1,000-par fixed-rate reset junior subordinated notes due 2040.

The notes will be issued by Enstar Finance LLC and will be guaranteed by Enstar Group on a junior subordinated basis.

The coupon resets on Sept. 1, 2025 and every five years thereafter at the Treasury rate plus a spread.

The notes are redeemable within six months of each reset date at par. The notes are also redeemable after a change in law at par, a tax event at par, or after a rating agency event at 102%.

Leading the way in the secondary, Argo Group International Holdings, Ltd.’s 7% resettable fixed-rate preference shares were gaining.

The securities (NYSE: ARGOPrA) were up 17 cents to $25.41 on volume of about 186,000 shares.

Meanwhile, in communications, Qwest Corp.’s 6.5% notes due 2056 were dipping, going against the early trend.

The notes (NYSE: CTBB) were losing 6 cents to $25.39 with about 43,000 notes trading.

Sector peer AT&T, Inc.’s 4.75% series C perpetual preferred stock was also under pressure.

The preferreds (NYSE: TPrC) were shaving off 6 cents to $25.09 on volume of about 39,000 shares.

Rural lender Federal Agricultural Mortgage Corp.’s new 5.25% series F non-cumulative perpetual preferreds were picking up steam.

The preferreds, trading under the temporary symbol “AGMFP,” were shooting up 18 cents to $25.20 with about 40,000 shares trading.

Elsewhere, in the finance space, First Midwest Bancorp, Inc.’s 7% series C fixed-rate non-cumulative perpetual preferred stock was improving.

The preferreds (Nasdaq: FMBIO) were tacking on 19 cents to $25.69 on volume of about 38,000 shares.

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