Gabelli Equity Trust prices; AT&T preferreds rise; First Republic negative

By James McCandless

San Antonio, Dec. 10 – The preferred market saw an overall positive trend on Tuesday, though top traders varied.

The primary space saw Gabelli Equity Trust Inc. price an upsized $100 million offering of $25-par series K cumulative preferred stock at par with a dividend of 5%.

Leading in the secondary, communications giant AT&T Inc.’s new 5% series A perpetual preferred stock rose.

Elsewhere, in finance, First Republic Bank’s 4.7% series J non-cumulative perpetual preferred stock was under pressure.

Sector peer Morgan Stanley’s 4.875% series L non-cumulative preferred stock was active but unmoved.

AXA Equitable Holdings, Inc.’s 5.25% series A fixed-rate non-cumulative perpetual preferreds ended weaker.

Meanwhile, REIT PS Business Parks, Inc.’s 4.875% series Z cumulative preferred stock also remained level.

Gabelli prices

The primary space saw Gabelli Equity price an upsized $100 million offering of $25-par series K cumulative preferred stock at par with a dividend of 5%.

The deal, announced Tuesday morning, was upsized from an initial $75 million and matched talk for a dividend in the 5% area.

Morgan Stanley & Co. LLC and UBS Securities LLC are joint bookrunners and are underwriters along with G.research, LLC.

The preferreds are redeemable after five years at par.

AT&T rises

Leading in the secondary market, communications giant AT&T’s new 5% series A perpetual preferred stock spent the day rising.

The preferreds, trading under the temporary symbol “ATATL,” were up 14 cents to close at $25.02 on volume of about 2.1 million shares.

On Monday, the preferreds gained 3 cents.

First Republic down

Elsewhere, in the finance space, First Republic’s 4.7% series J non-cumulative perpetual preferred stock were under pressure.

The preferreds (NYSE: FRCPrJ) declined by 4 cents to close at $24.82 with about 477,000 shares trading.

Sector peer Morgan Stanley’s 4.875% series L non-cumulative preferred stock was active but ended the afternoon unmoved.

The preferreds (NYSE: MSPrL) were level to close at $24.85 on volume of about 430,000 shares.

AXA’s 5.25% series A fixed-rate non-cumulative perpetual preferreds ended in a weaker position.

The preferreds (NYSE: EQHPrA) dipped 6 cents to close at $24.99 with about 388,000 shares trading.

On Monday, the preferreds were rigid.

PS Business level

Meanwhile, real estate investment trust PS Business Parks’ 4.875% series Z cumulative preferred stock also remained level.

The preferreds (NYSE: PSBPrZ) finished flat at $24.68 on volume of about 379,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended with a 0.15% gain, improving on a 0.01% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was up 7 cents to $36.95.

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