Intact Financial taps $25-par market; AT&T preferreds mixed; Capital One improves

By James McCandless

San Antonio, Feb. 18 – Top traders in the preferred space drifted upward while the broader market was under pressure at the beginning of the holiday-shortened week.

In the primary market, Intact Financial Corp. sold an upsized $150 million offering of $25-par series 9 non-cumulative class A preferred shares with a dividend of 5.4%.

Secondary trading was led by mixed results for AT&T, Inc.’s recent 4.75% series C perpetual preferred stock and its 5% series A cumulative perpetual preferred stock.

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

Sector peer Ladenburg Thalmann Financial Services, Inc.’s 8% series A cumulative redeemable preferreds were trimmed.

Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock saw a small gain.

Meanwhile, REIT New Residential Investment Corp.’s recent 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock improved.

Intact prices

In the primary market, Intact Financial sold an upsized $150 million offering of $25-par series 9 non-cumulative class A preferred shares with a dividend of 5.4%.

There is no greenshoe.

The deal, announced on Feb. 6, was upsized from $125 million.

TD Securities Inc., BMO Capital Markets, CIBC Capital Markets, National Bank Financial, RBC Capital Markets and Scotiabank are the underwriters.

Dividends will be paid at $0.3375 per share on the last day of March, June, September and December, starting on June 30, 2020.

AT&T mixed

Tuesday’s secondary trading was led by mixed results for telecom services provider AT&T’s recent 4.75% series C perpetual preferred stock and its 5% series A cumulative perpetual preferred stock.

The series C preferreds, trading under the temporary symbol “ATTXL,” were down 1 cent to close at $24.19 on volume of about 2.1 million shares.

On Friday, the preferreds added 2 cents.

The series A preferreds (NYSE: TPrA) were up 12 cents to close at $26.18 on volume of about 404,000 shares.

Capital One better

Elsewhere, in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock saw better levels by the end of the session.

The preferreds (NYSE: COFPrJ) garnered 2 cents to close at $25.00 with about 528,000 shares trading.

On Friday, the preferreds picked up 2 cents.

Sector peer Ladenburg Thalmann’s 8% series A cumulative redeemable preferreds was trimmed at the end of the afternoon.

The preferreds (NYSE: LTSPrA) dipped 1 cent to close at $24.99 with about 358,000 shares trading.

The company said on Friday that as part of its merger with Advisor Group, it would delist the series A preferreds.

Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock saw a small gain, running against the prevailing trend.

The preferreds (NYSE: WFCPrZ) gained 1 cent to close at $25.49 with about 345,000 shares trading.

On Friday, the preferreds rose 1 cent.

New Residential up

Meanwhile, real estate investment trust New Residential’s recent 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock improved.

The preferreds, trading under the temporary symbol “NRESP,” tacked on 3 cents to close at $24.85 on volume of about 338,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day down by 0.09%, falling from a 0.03% gain in early Tuesday trading.

The iShares US Preferred Stock ETF was down 2 cents to $38.24.

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