Gabelli, Medallion sell $25-par preferreds; AXA leaps; AT&T improves

By James McCandless

San Antonio, Dec. 17 – The preferred space continued to move in an upward direction on Tuesday.

In the primary space, Gabelli Multimedia Trust Inc. priced a $50 million offering of $25-par series G fixed-rate cumulative preferred shares at par with a dividend of 5.125%.

Also, Medallion Financial Corp. priced $46 million of $25-par series F fixed-to-floating rate non-cumulative perpetual preferred stock with an initial dividend of 8%.

The secondary market saw AXA Equitable Holdings, Inc.’s 5.25% series A non-cumulative preferred stock leap higher.

Elsewhere in finance, Morgan Stanley’s 4.875% series A non-cumulative preferred stock was under pressure.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds gained.

Telecom giant AT&T Inc.’s recent 5% series A perpetual preferred stock improved by the close.

Meanwhile, insurance name Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock also ended in a stronger position.

Gabelli prices

In the Tuesday primary space, Gabelli Multimedia priced a $50 million offering of $25-par series G fixed-rate cumulative preferred shares (A2 expected) at par with a dividend of 5.125%.

There is no greenshoe.

BofA Securities, Inc. is the bookrunner.

Dividends are payable on March 26, June 26, Sept. 26 and Dec. 26 of each year, commencing on March 26, 2020.

The preferreds are redeemable on or after Dec. 20, 2024 at par.

Medallion’s deal

Also, Medallion Financial priced $46 million of $25-par series F fixed-to-floating rate non-cumulative perpetual preferred stock with an initial dividend of 8%, including $6 million from a greenshoe that was exercised on Tuesday.

Sandler O’Neill + Partners, LP, B. Riley FBR Inc. and Ladenburg Thalmann & Co. Inc. are the joint bookrunners.

Dividends are payable on Jan. 1, April 1, July 1 and Oct. 1 of each year, commencing on April 1, 2020.

The dividend is fixed until April 1, 2025, then converts to a floating rate of the three-month SOFR plus 646 basis points.

AXA adds

The secondary market saw AXA’s 5.25% series A non-cumulative preferred stock leap higher as the session came to a close.

The preferreds (NYSE: EQHPrA) were up 16 cents to close at $25.44 on volume of about 650,000 shares.

On Monday, the preferreds improved by 3 cents.

Elsewhere in the finance space, Morgan Stanley’s 4.875% series A non-cumulative preferred stock was under pressure.

The preferreds (NYSE: MSPrL) declined by 2 cents to close at $25.06 with about 374,000 shares trading.

On Monday, the preferreds rose 3 cents.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds gained during Tuesday activity.

The preferreds (NYSE: COFPrI) garnered 10 cents to close at $25.02 on volume of about 340,000 shares.

AT&T better

Telecom service provider AT&T’s recent 5% series A perpetual preferred stock improved by the end of the afternoon.

The preferreds, trading under the temporary symbol “ATATL,” added 8 cents to close at $25.52 with about 432,000 shares trading.

On Monday, the preferreds tacked on 9 cents.

Allstate gains

Meanwhile, insurance name Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock ended the day in a stronger position.

The preferreds (NYSE: ALLPrH) rose 7 cents to close at $25.91 on volume of about 260,000 shares.

On Monday, the preferreds picked up 7 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished Tuesday up by 0.26%, rising past the 0.09% gain from early Tuesday trading. The iShares US Preferred Stock ETF was up 11 cents to $37.48.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.