Morning Commentary: TriState plans preferreds; Deutsche Bank improves; Legg Mason weaker

By James McCandless

San Antonio, May 21 – The preferred space saw a positive start with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.05%.

TriState Capital Holdings, Inc. plans to price an offering of $25-par series B fixed-to-floating rate non-cumulative perpetual preferred stock.

Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. are the joint bookrunners.

Co-managers are B. Riley FBR, Inc., Boenning & Scattergood, Inc. and Stephens Inc.

The preferreds are redeemable on or after July 1, 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed until July 1, 2026, then converts to a floating rate of Libor plus a spread.

In secondary trading, Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities were improving.

The preferreds (NYSE: DXB) picked up 14 cents to $24.98 on volume of about 40,000 shares.

Elsewhere in the finance space, Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds followed the morning’s trend.

The preferreds (NYSE: GSPrD) were up 4 cents to $19.74 with about 30,000 shares trading.

Asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were off to a weak start early Tuesday.

The notes (NYSE: LMHB) were down 2 cents to $24.62 on volume of about 34,000 notes.

On Monday, news broke that it is appointing two new members to its board of directors at the urging of stakeholder Trian Fund Management.

The appointments are part of a deal for Legg Mason to avoid an activist push from Trian, which would have urged the company to increase profits.

Meanwhile, in communications, Qwest Corp.’s 6.5% notes due 2056 were shooting higher as the session started.

The notes (NYSE: CTBB) were rising 17 cents to $22.95 with about 34,000 notes trading.

In the oil and gas space, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were also positive.

The preferreds (NYSE: ETPPrE) gained 5 cents to $24.88 on volume of about 31,000 shares.

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