Morning Commentary: MTBC add-on on tap; Wells Fargo preferreds improve; NuStar active

By James McCandless

San Antonio, April 22 – The preferred market opened with an overall positive tone as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.59%.

In primary market activity, MTBC, Inc. announced its plans to price $15 million more of its $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 11%.

There is an expected $2.25 million greenshoe.

The preferreds originally priced on Sept. 26, 2017.

B. Riley FBR Inc., Ladenburg Thalmann & Co. Inc. and National Securities Corp. are the joint bookrunners.

The preferreds are redeemable on or after Nov. 4, 2020 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control at par.

Leading secondary market trading volume, Wells Fargo & Co.’s 5.5% series X non-cumulative perpetual class A preferred stock was improving.

The preferreds (NYSE: WFCPrX) were up 28 cents to $25.15 on volume of about 106,000 shares.

Meanwhile, in oil and gas, NuStar Logistics, LP’s 7.625% fixed-to-floating rate subordinated notes due 2043 were gaining while NuStar Energy LP’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred units started under pressure.

The notes (NYSE: NSS) were adding 26 cents to $16.96 with about 87,000 shares trading.

The series A preferreds (NYSE: NSPrA) were shaving off 4 cents to $14.00 with about 66,000 shares trading.

Asset manager Annaly Capital Management, Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds tracked higher.

The preferreds (NYSE: NLYPrF) were shifting up 15 cents to $21.41 on volume of about 47,000 shares.

Insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock followed the prevailing trend.

The preferreds (NYSE: ALLPrH) were rising 19 cents to $25.05 with about 42,000 shares trading.

Meanwhile, telecom services company AT&T Inc.’s 4.75% series C perpetual preferred stock was also gaining ground.

The preferreds (NYSE: TPrC) were improving by 24 cents to $22.94 with about 41,000 shares trading.

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