XOMA taps $25-par market; Monmouth leads decline; Ally Financial preferreds lose

By James McCandless

San Antonio, Dec. 10 – By the end of the Thursday session, the preferred market experienced blanket negativity.

In primary activity, XOMA Corp. priced a $22 million offering of $25-par series A cumulative perpetual preferred stock with a dividend of 8.625%.

Leading the secondary’s decline, REIT Monmouth Real Estate Investment Corp.’s 6.125% series C cumulative redeemable preferred stock trended downward.

Meanwhile, in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities lost ground.

Sector peer U.S. Bancorp’s series B floating rate non-cumulative perpetual preferreds were under water as the afternoon ended.

Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock followed the day’s prevailing trend.

Elsewhere, insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock also turned negative.

XOMA’s deal

In late-week primary activity, XOMA priced a $22 million offering of $25-par series A cumulative perpetual preferred stock with a dividend of 8.625%, according to a press release.

There is a $2.6 million greenshoe.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., National Securities Corp. and William Blair & Co. LLC are the bookrunners.

The preferreds are redeemable at $26.00 after one year, $25.75 after two years, $25.50 after three years, $25.25 after four years and $25.00 after five years. The preferreds are also redeemable within 90 days after a delisting event at par or 120 days after a change of control at par.

Monmouth off

Leading the secondary’s decline, real estate investment trust Monmouth’s 6.125% series C cumulative redeemable preferred stock trended downward.

The preferreds (NYSE: MNRPrC) were down 5 cents to close at $24.90 on volume of about 852,000 shares.

Ally loses

Meanwhile, in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities lost some ground.

The preferreds (NYSE: ALLYPrA) were docked 4 cents to close at $25.86 with about 332,000 shares trading.

Sector peer U.S. Bancorp’s series B floating rate non-cumulative perpetual preferreds were under water as the afternoon ended.

The preferreds (NYSE: USBPrH) shaved off 4 cents to close at $24.34 on volume of about 287,000 shares.

On Wednesday, the preferreds shot up 18 cents.

Truist Financial’s 4.75% series R non-cumulative perpetual preferred stock followed the day’s prevailing trend.

The preferreds (NYSE: TFCPrR) dipped 19 cents to close at $26.87 with about 197,000 shares trading.

Allstate negative

Elsewhere, insurance provider Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock also turned negative.

The preferreds (NYSE: ALLPrH) declined by 6 cents to close at $27.56 on volume of about 234,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended down 0.21% on Thursday.

The index ended Wednesday up by 0.15%, capped Tuesday up by 0.21% and finished Monday down by 0.07%.

The iShares US Preferred Stock ETF was down 8 cents to $37.87.

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