Armada Hoffler Properties, Great Elm prep offerings; Athene preferreds up; KeyCorp falls

By James McCandless

San Antonio, June 10 – The start to the new week in the preferred space saw mostly positive activity.

In the primary market, Armada Hoffler Properties, Inc. said it plans to price an offering of $25-par series A cumulative redeemable perpetual preferred stock at par.

Great Elm Capital Corp. plans to price an offering of five-year senior notes.

Leading the secondary, Athene Holding Ltd.’s new 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares gained again.

Meanwhile, in finance, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds were seen falling.

Sector peer Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities closed slightly better.

JPMorgan Chase & Co.’s 6.125% series Y and 6% series EE non-cumulative preferred stock both ended the session higher.

Rural lender Federal Agricultural Mortgage Corp.’s 5.7% series D non-cumulative preferreds finished the day lower.

Armada Hoffler’s deal

In primary market activity, Armada Hoffler announced plans for an offering of $25-par series A cumulative redeemable perpetual preferred stock at par.

Jefferies LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

The preferreds are redeemable after five years. Prior to that, they are redeemable within 120 days after a change-of-control event.

Great Elm’s notes

Great Elm plans to price an offering of five-year senior notes.

Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are the joint bookrunners. Incapital LLC is a lead manager.

Great Elm plans to use the proceeds to make investments consistent with its investment objectives and for general corporate purposes.

Athene gains

Elsewhere, in secondary trading, Athene’s new 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares saw more gains on Monday.

The preferreds, trading under the temporary symbol “ATHDF,” were up 15 cents to close at $26.10 on volume of about 1.7 million shares.

On Friday, the preferreds shot up 42 cents.

KeyCorp off

Meanwhile, in the finance space, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds were falling as the session ended.

The preferreds (NYSE: KEYPrK) declined by 17 cents to close at $25.77 with about 536,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities finished slightly better.

The preferreds (NYSE: ALLYPrA) picked up 1 cent to close at $26.15 on volume of about 286,000 shares.

JPMorgan’s 6.125% series Y and 6% series EE non-cumulative preferred stock both ended the session a little higher.

The series Y preferreds (NYSE: JPMPrF) were better by 2 cents to close at $25.73 with about 196,000 shares trading.

The series EE preferreds (NYSE: JPMPrC) added 5 cents to close at $26.88 with about 172,000 shares trading.

Farmer Mac loses

Rural lender Farmer Mac’s 5.7% series D non-cumulative preferreds finished the day on a negative path.

The preferreds (NYSE: AGMPrD) were down 22 cents to close at $25.30 on volume of about 292,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.09% to finish the session, giving back some of the 0.17% gain in early Monday trading.

The iShares US Preferred Stock ETF was up 1 cent to $36.73.

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