Chicken Soup sells add-on; Signature Bank dips; Athene preferreds rise

By James McCandless

San Antonio, Dec. 18 – The preferred space closed out Friday on a downward trend, giving back some of the gains made previously this week.

In primary activity, Chicken Soup for the Soul Entertainment, Inc. sold a $9,387,750 add-on to its $25-par notes due July 31, 2025 with a coupon of 9.5%.

Leading secondary trading, Signature Bank’s recent 5% series A non-cumulative perpetual preferred stock dipped.

Elsewhere in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock ended on a better note.

Sector peer Bank of America Corp.’s 4.375% series NN non-cumulative preferreds eked out a small gain.

Retirement services name Athene Holding Ltd.’s new 4.875% series D fixed-rate perpetual non-cumulative preference shares rose.

Meanwhile, real estate company Sachem Capital Corp.’s 7.75% notes due 2025 were on the back foot again after pricing an add-on to the tranche.

Chicken Soup prices

In late-week primary activity, Chicken Soup for the Soul sold a $9,387,750 add-on to its $25-par notes due July 31, 2025 with a coupon of 9.5%.

The add-on priced at $24.50 for proceeds of $9.2 million.

There is a $1,408,150 greenshoe.

Ladenburg Thalmann Co. Inc. is the bookrunner.

The notes are redeemable on or after July 31, 2022 at par. Prior to that, the notes are redeemable after a change of control at par.

Signature dips

Leading the session’s secondary trading, Signature Bank’s recent 5% series A non-cumulative perpetual preferred stock dipped.

The preferreds (Nasdaq: SBNYP) were down 5 cents to close at $25.44 on volume of about 997,000 shares.

On Thursday, the preferreds jumped up 43 cents.

Elsewhere in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock ended on a better note.

The preferreds (NYSE: COFPrJ) improved by 12 cents to close at $25.75 with about 519,000 shares trading.

On Thursday, the preferreds pushed up 16 cents.

Sector peer Bank of America’s 4.375% series NN non-cumulative preferreds eked out a small gain to finish out the week.

The preferreds (NYSE: BACPrO) tacked on 1 cent to close at $26.42 on volume of about 284,000 shares.

Athene rises

Retirement services name Athene’s new 4.875% series D fixed-rate perpetual non-cumulative preference shares rose.

The preferreds, trading under the temporary symbol “ATHDF,” reached up 6 cents to close at $25.08 with about 394,000 shares.

On Thursday, the preferreds were boosted by 14 cents.

Sachem falls

Meanwhile, real estate finance company Sachem Capital’s 7.75% notes due 2025 were on the back foot for the second day in a row.

The notes (NYSE: SCCC) declined by 30 cents to close at $24.77 on volume of about 338,000 notes.

The company recently priced a $25 million add-on to the notes.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended Friday down by 0.05%.

The index gained 0.22% on Thursday, was 0.18% better on Wednesday, and added 0.36% on Tuesday.

In the aggregate, the index rose by 0.93%.

The iShares US Preferred Stock ETF was down 5 cents to $38.19.

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