Sachem, Flagstar sell notes; Fulton preferreds end above par; Public Storage dips

By James McCandless

San Antonio, Oct. 23 – Finishing off the week, the preferred market trended positively, ending a rally after declines earlier in the week.

In late-week primary activity, Sachem Capital Corp. priced another $14 million of $25-par notes due Sept. 30, 2025 with a coupon of 7.75% at par.

Meanwhile, Flagstar Bancorp, Inc. priced a $150 million offering of $1,000-par fixed-to-floating rate subordinated notes due Nov. 1, 2030.

Far and away the day’s volume leader, Fulton Financial Corp.’s new $200 million 5.125% series A fixed-rate non-cumulative perpetual preferred stock ended above par.

Elsewhere in the finance space, U.S. Bancorp’s recent 3.75% series L non-cumulative perpetual preferred stock was under pressure.

Sector peer Capital One Financial Corp.’s 5% series I and 4.8% series J fixed-rate non-cumulative perpetual preferreds both improved.

Property owner Public Storage’s 3.875% series N cumulative preferred shares ended the session dipping.

Also, insurance provider MetLife, Inc.’s 4.75% series F non-cumulative preferred stock spiked late in the afternoon.

Sachem prices

In late-week primary activity, Sachem priced another $14 million of $25-par notes due Sept. 30, 2025 with a coupon of 7.75% at par.

There is a $2.1 million greenshoe.

The notes will rank equally and form a single series with the $14,363,750 aggregate principal amount of 7.75% notes due 2025 that were issued in September.

Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are the bookrunners.

The notes are redeemable on or after Sept. 4, 2022 at par.

Flagstar’s deal

Meanwhile, Flagstar priced a $150 million offering of $1,000-par fixed-to-floating rate subordinated notes (Baa3//Kroll: BBB) due Nov. 1, 2030.

Raymond James & Associates, Inc. and BofA Securities, Inc. are the bookrunners.

The coupon is fixed until Nov. 1, 2025, then converts to a floating rate of the three-month SOFR plus 391 basis points.

The notes are redeemable on or after Nov. 1, 2025 at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event or if the company is required the register as an investment company at par.

Fulton past par

Far and away the day’s secondary volume leader, Fulton Financial’s new $200 million 5.125% series A fixed-rate non-cumulative perpetual preferred stock ended its first session above par.

The preferreds, trading under the temporary symbol “FULPP,” were seen closing at $25.50 on volume of about 1.1 million shares.

The deal priced on Thursday.

Elsewhere in the finance space, U.S. Bancorp’s recent 3.75% series L non-cumulative perpetual preferred stock was under pressure.

The preferreds, trading under the temporary symbol “UBKPL,” lost 1 cent to close at $24.68 with about 499,000 shares trading.

On Thursday, the preferreds drifted down 4 cents.

Sector peer Capital One’s 5% series I and 4.8% series J fixed-rate non-cumulative perpetual preferreds both improved.

The series I preferreds (NYSE: COFPrI) jumped up 22 cents to close at $25.68 on volume of about 338,000 shares.

The series J preferreds (NYSE: COFPrJ) tacked on 4 cents to close at $24.90 on volume of about 301,000 shares.

Public Storage dips

Real estate investment trust Public Storage’s 3.875% series N cumulative preferred shares ended the Friday session dipping.

The preferreds (NYSE: PSAPrN) shaved off 3 cents to close at $25.02 with about 285,000 shares trading.

On Thursday, the preferreds improved by 11 cents.

MetLife spikes

Also, insurance provider MetLife’s 4.75% series F non-cumulative preferred stock spiked late in the afternoon.

The preferreds (NYSE: METPrF) leaped up 45 cents to close at $27.07 on volume of about 184,000 shares trading.

On Thursday, the preferreds shot up 11 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week up by 0.53%, building on a 0.07% rise from early Friday trading.

The iShares US Preferred Stock ETF was up 23 cents to $37.07.

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