Capital One taps $25-par market; Wells Fargo preferreds improve; MetLife sees boost

By James McCandless

San Antonio, Jan. 28 – The Tuesday session in preferred trading was generally positive, centered on finance and insurance names.

In the primary market, Capital One Financial Corp. priced a $1.25 billion offering of $25-par series J fixed-rate non-cumulative perpetual preferred stock at par with a dividend of 4.8%.

The company’s established 5% series I fixed-rate non-cumulative perpetual preferred stock edged higher.

Leading secondary trading again, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock improved.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 6% series EE and 6.15% series BB non-cumulative preferred stock varied in direction.

Meanwhile, insurance provider MetLife, Inc.’s 4.75% series F non-cumulative preferreds saw a boost by the end of the session.

Sector peer Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock were negative, going against the trend.

Capital One’s deal

In the primary market, Capital One priced a $1.25 billion offering of $25-par series J fixed-rate non-cumulative perpetual preferred stock (Baa3/BB/BB) at par with a dividend of 4.8% on Tuesday.

There is no greenshoe.

The offering was announced Tuesday morning.

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

The preferreds are redeemable on or after June 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event at par.

The company’s established 5% series I fixed-rate non-cumulative perpetual preferred stock edged higher as the afternoon ended.

The preferreds (NYSE: COFPrI) picked up 2 cents to close at $25.49 on volume of about 515,000 shares.

On Monday, the preferreds gained 7 cents.

Wells Fargo up

Maintaining its position at the top of secondary trading again, Wells Fargo saw an improvement in its 4.75% series Z non-cumulative perpetual class A preferred stock.

The preferreds (NYSE: WFCPrZ) were up 4 cents to close at $25.25 with about 3.5 million shares trading.

On Monday, the preferreds shaved off 1 cent.

Elsewhere in the finance space, JPMorgan’s 6% series EE and 6.15% series BB non-cumulative preferred stock varied in direction.

The series EE preferreds (NYSE: JPMPrC) garnered 3 cents to close at $27.96 on volume of about 377,000 shares.

The series BB preferreds (NYSE: JPMPrH) dipped by 6 cents to close at $25.86 on volume of about 309,000 shares.

MetLife rises

Meanwhile, insurance provider MetLife’s 4.75% series F non-cumulative preferreds saw a positive boost by the end of the session.

The preferreds (NYSE: METPrF) added 16 cents to close at $25.53 with about 607,000 shares trading.

On Monday, the preferreds shed 12 cents.

Sector peer Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock were negative as the session finished, going against the day’s trend.

The preferreds (NYSE: ALLPrH) lost 5 cents to close at $26.18 on volume of about 424,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index settled Tuesday unchanged, giving back a 0.08% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was up 11 cents to $38.06.

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