Morning Commentary: Gladstone downsizes notes; U.S. Cellular eyed; Truist improves

By James McCandless

San Antonio, Aug. 10 – A fresh week began with the preferred market moving on a positive track as the Wells Fargo Hybrid & Preferred Securities Financial index opened up by 0.06%.

In primary activity, Gladstone Investment Corp. announced plans to price a downsized $200 million offering of $25-par notes due 2040 with a coupon of 6%.

The offering, originally announced on July 31, was downsized from an initial $350 million.

Gladstone Securities, LLC is the dealer manager.

Coupons are payable monthly.

Also, United States Cellular Corp. plans to price an offering of $25-par senior notes due 2025.

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

The notes are redeemable after five years.

Taking the lead in the early secondary market, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was improving.

The preferreds (NYSE: TFCPrR) were up 4 cents to $25.33 on volume of about 276,000 shares.

Elsewhere in the finance space, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were also pushing higher.

The preferreds (NYSE: ALLYPrA) were rising 15 cents to $24.17 with about 43,000 shares trading.

Asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were relatively active but unchanged.

The notes (NYSE: LMHB) were holding level at $25.12 on volume of about 86,000 notes.

In communications, Qwest Corp.’s 6.125% notes due 2053 were following the prevailing trend as the session kicked off.

The notes (NYSE: CTY) were picking up 6 cents to $24.90 with about 39,000 notes trading.

Meanwhile, real estate investment trust Ashford Hospitality Trust, Inc.’s 7.375% series G cumulative preferred stock was jumping.

The preferreds (NYSE: AHTPrG) were shooting up 30 cents to $5.20 on volume of about 35,000 shares.

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