CoBank trades north of par; Torchmark lists; State Street rises; Ally to retire series A

By Stephanie N. Rotondo

Seattle, April 6 – The preferred stock market was edging higher in midweek trading.

The Wells Fargo Hybrid and Preferred Securities index finished 13 basis points higher.

The primary space had another new deal churning about, after CoBank ACB priced a $375 million offering of 6.25% $1,000-par fixed-to-floating rate perpetual preferreds late Tuesday.

Toward the close, a trader quoted the new deal – which had freed to trade – at 100.875 bid, 101 offered. That compared to earlier quotes of 100.5 bid, 101 offered.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC ran the books.

The dividend is fixed until Oct. 1, 2026, at which point it will float at Libor plus 466 bps.

Among recently priced deals, Torchmark Corp.’s $300 million of 6.125% $25-par junior subordinated debentures due June 15, 2056 hit the New York Stock Exchange, trading under the ticker “TMKPC.”

The notes ended at $25.10, up from $25.02 at the open, a trader said.

State Street Corp.’s $500 million of 5.35% series G fixed-to-floating rate noncumulative preferreds moved up 3 cents to close at $25.65.

That issue priced Monday and freed on Tuesday. It is trading under a temporary symbol, “SSTTP.”

Separately, Ally Financial Inc. announced plans for a senior notes offering on Tuesday, the proceeds of which will be used to retire the remaining 8.5% series A fixed-to-floating rate perpetual preferred stock (NYSE: ALLYPB).

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