Morning Commentary: Affiliated Managers $25-pars on deck; Public Storage active early

By James McCandless

San Antonio, Sept. 17 – The preferred market was trading lower early Thursday with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.03%.

On the primary side, Affiliated Managers Group, Inc. announced plans to price an offering of $25-par junior subordinated notes due 2060.

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

The notes are redeemable after a certain time at par. The notes are also redeemable after a tax event at par or a ratings agency event at 102%.

Early secondary activity was led by real estate investment trust Public Storage’s 5.2% series W and 5.2% series X cumulative preferred shares, which were varying in direction.

The series W preferreds (NYSE: PSAPrW) were up 1 cent to $25.01 on volume of about 149,000 shares.

The series X preferreds (NYSE: PSAPrX) were holding level at $25.00 on volume of about 89,000 shares.

Elsewhere, utilities provider Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred stock was starting on the positive side.

The preferreds (NYSE: JEPrA) were tacking on 1 cent to $1.83 with about 97,000 shares trading.

Retirement services company Athene Holding Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preferreds and its 5.625% series B fixed-rate perpetual non-cumulative preferreds moved on different paths.

The series A preferreds (NYSE: ATHPrA) were gaining 4 cents to $26.35 on volume of about 46,000 shares.

The series B preferreds (NYSE: ATHPrB) were declining by 7 cents to $25.43 on volume of about 45,000 shares.

Meanwhile, in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were being pushed lower.

The preferreds (NYSE: ALLYPrA) were shedding 14 cents to $25.01 with about 43,000 shares trading.

Oil and gas name NuStar Energy LP’s 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferred units were also under pressure.

The preferreds (NYSE: NSPrB) were losing 2 cents to $16.55 on volume of about 37,000 shares.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.