Associated Banc-Corp, Pacific price; Public Storage ends above par; JPMorgan declines

By James McCandless

San Antonio, June 9 – The preferred market closed Tuesday with declines, ending a multiday positivity streak that began last week.

In new primary issuance, Associated Banc-Corp priced an upsized $100 million offering of $25-par series F non-cumulative perpetual preferred stock with a dividend of 5.625% at par.

Also, Pacific Premier Bancorp, Inc. priced a $150 million offering of $1,000-par fixed-to-floating rate subordinated notes due June 15, 2030 with a coupon of 5.375% at par.

Leading the secondary space, REIT Public Storage’s new $500 million 4.625% series L cumulative preferred shares ended above par.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s 6.1% series AA non-cumulative preferred stock declined.

Sector peer Atlantic Union Bankshares Corp.’s 6.875% series A perpetual non-cumulative preferred stock saw a small gain.

Pinnacle Financial Partners, Inc.’s 6.75% series B fixed-rate non-cumulative perpetual preferreds trailed.

Meanwhile, retirement services provider Athene Holding Ltd.’s new 6.375% series C fixed-rate reset perpetual non-cumulative preference shares weakened.

Associated Banc-Corp prices

In new primary issuance, Associated Banc-Corp priced an upsized $100 million offering of $25-par series F non-cumulative perpetual preferred stock (Baa3/BB/) with a dividend of 5.625% at par.

The deal, announced Tuesday morning, was upsized from an initial $75 million and came in at the lower end of talk for a yield in the 5.75% area.

BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are the bookrunners.

The preferreds are redeemable on or after Sept. 15, 2025 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

Pacific Premier’s deal

Also, Pacific Premier priced a $150 million offering of $1,000-par fixed-to-floating rate subordinated notes due June 15, 2030 with a coupon of 5.375% at par.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed until June 15, 2025, then converts to a floating rate of the three-month SOFR plus 517 bps.

The notes are redeemable on or after June 15, 2025 at par. Prior to that, the notes are redeemable if a change in law prevents the company from deducting interest from the notes, a tier 2 capital event or if the company is required to register as an investment company.

Public Storage tops par

Leading in the secondary space, real estate investment trust Public Storage’s new $500 million 4.625% series L cumulative preferred shares ended their first day above par.

The preferreds, trading under the temporary symbol “PUBXL,” closed at $25.08 on volume of about 4.6 million shares.

The deal priced on Monday.

JPMorgan off

Elsewhere, in the finance space, JPMorgan’s 6.1% series AA non-cumulative preferred stock declined by the end of the session.

The preferreds (NYSE: JPMPrG) moved down by 17 cents to close at $25.38 with about 446,000 shares trading.

Sector peer Atlantic Union’s 6.875% series A perpetual non-cumulative preferred stock saw a small gain.

The preferreds, trading under the temporary symbol “AUBKL,” tacked on 2 cents to close at $25.00 on volume of about 222,000 shares.

Pinnacle’s 6.75% series B fixed-rate non-cumulative perpetual preferreds trailed as the afternoon came to a close.

The preferreds (Nasdaq: PNFPP) dropped 15 cents to close at $25.87 with about 218,000 shares trading.

Athene weaker

Meanwhile, retirement services provider Athene’s new 6.375% series C fixed-rate reset perpetual non-cumulative preference shares weakened.

The preferreds trading under the temporary symbol “ATHHL,” shed 21 cents to close at $25.39 on volume of about 300,000 shares.

On Monday, the preferreds gained 20 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.34%, wider than the 0.30% dip in early Tuesday trading.

The iShares US Preferred Stock ETF was down 17 cents to $35.69.

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