Morning Commentary: Ontrak plans add-on; OFS offers $25-par notes; First Republic rises

By James McCandless

San Antonio, Sept. 14 – The preferred market began a new week with an upward push as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.22%.

Opening up the week’s primary activity, Ontrak, Inc. announced the start of an at-the-market offering for up to $50 million more of its series A cumulative perpetual preferred stock with a dividend of 9.5%.

B. Riley Securities, Inc. is the sales agent.

The company originally priced $42.5 million of the preferreds on Aug. 21, with the full $6,375,000 greenshoe exercised on Sept. 8.

Also, OFS Capital Corp. intends to offer $25-par notes.

The notes will be sold at par and are expected to be listed on Nasdaq under the symbol “OFSSG.”

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and National Securities Corp. are the bookrunners.

At the top of the morning’s secondary market, First Republic Bank’s new 4.125% series K non-cumulative perpetual preferred stock was being lifted.

The preferreds, trading under the temporary symbol “FRCLL,” were jumping up 18 cents to $25.18 on volume of about 54,000 shares.

Elsewhere in the finance space, Bank of America Corp.’s 5.875% series HH and 6.2% series CC non-cumulative preferred stocks were both improving.

The series HH preferreds (NYSE: BACPrK) were up 5 cents to $27.25 with about 50,000 shares trading.

The series CC preferreds (NYSE: BACPrC) were tacking on 3 cents to $25.65 with about 28,000 shares trading.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was following the early positive trend.

The preferreds (NYSE: WFCPrZ) were shooting up 13 cents to $24.95 on volume of about 27,000 shares.

Insurance provider MetLife, Inc.’s 4.75% series F non-cumulative preferred stock also saw a jump as the session kicked off.

The preferreds (NYSE: METPrF) were adding 23 cents to $27.08 with about 52,000 shares trading.

Meanwhile, telecom services giant AT&T, Inc.’s 4.75% series C perpetual preferred stock was shifting to better levels.

The preferreds (NYSE: TPrC) were gaining 10 cents to $25.50 on volume of about 34,000 shares.

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