Gladstone preps $25-par notes; Truist ends below par; AT&T active, unchanged

By James McCandless

San Antonio, July 31 – Closing out the week, the preferred space finished with more positive results.

In primary movements, Gladstone Investment Corp. plans to price a $350 million offering of notes due 2040 with a coupon of 6%.

Far and away Friday’s volume leader, Truist Financial Corp.’s new $925 million 4.75% series R non-cumulative perpetual preferred stock closed below par.

Elsewhere in the finance space, Heartland Financial USA, Inc.’s 7% fixed-rate reset non-cumulative perpetual preferreds improved.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the day’s trend.

Meanwhile, telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock was active but unchanged.

Insurance carrier Argo Group International Holdings, Ltd.’s 7% resettable fixed-rate preference shares declined.

Gladstone on tap

In primary movement, Gladstone Investment announced plans to price a $350 million offering of notes due 2040 with a coupon of 6%.

Gladstone Securities, LLC is the dealer manager.

Coupons are payable monthly.

The notes are redeemable at the option of the company or the holders.

Truist under par

Far and away Friday’s volume leader, Truist’s new $925 million 4.75% series R non-cumulative perpetual preferred stock closed the session below par.

The preferreds, trading under the temporary symbol “TSTFL,” were seen closing at $24.95 on volume of about 10.4 million shares.

The deal priced on Thursday.

Elsewhere in the finance space, Heartland Financial’s 7% fixed-rate reset non-cumulative perpetual preferreds improved as the afternoon ended.

The preferreds (Nasdaq: HTLFP) gained 28 cents to close at $26.88 with about 510,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the day’s positive trend.

The preferreds (NYSE: ALLYPrA) picked up 12 cents to close at $24.07 on volume of about 412,000 shares.

On Thursday, the preferreds lost 2 cents.

AT&T active, flat

Meanwhile, telecom services provider AT&T’s 4.75% series C perpetual preferred stock was active but ultimately unchanged.

The preferreds (NYSE: TPrC) held level to close at $25.08 with about 225,000 shares trading.

On Thursday, the preferreds added 4 cents.

Argo down

Insurance carrier Argo Group’s 7% resettable fixed-rate preference shares declined by the end of the afternoon.

The preferreds (NYSE: ARGOPrA) shaved off 5 cents to close at $24.86 on volume of about 214,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the week better by 0.33%, more than doubling the 0.15% rise in early Friday trading.

The iShares US Preferred Stock ETF was up 12 cents to $36.18.

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