PennantPark sells $25-par notes; Capital One preferreds negative; Northern Trust weaker

By James McCandless

San Antonio, Sept. 24 – The preferred market gained in Tuesday morning trading but gave away much of the gains later in the session, as top traders varied.

PennantPark Investment Corp. priced a $75 million offering of $25-par five-year notes at par with a coupon of 5.5%.

In the secondary, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was negative.

Elsewhere in finance, Bank of America Corp.’s 5% series LL non-cumulative preferred stock was active but finished unchanged.

Sector peer Wells Fargo & Co.’s 5.625% series Y non-cumulative perpetual class A preferreds saw a small gain.

Asset manager Northern Trust Corp.’s 5.85% series C non-cumulative perpetual preferred stock ended weaker.

Meanwhile, insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferreds spent the session improving.

PennantPark prices

The primary space saw PennantPark price a $75 million offering of $25-par five-year notes at par with a coupon of 5.5%.

There is an $11.25 million greenshoe.

The deal was announced Tuesday morning.

Keefe, Bruyette & Woods, Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes are redeemable on or after Oct. 15, 2021 at par.

Capital One negative

In the secondary market, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock was negative by the end of the day.

The preferreds (NYSE: COFPrI) were down 5 cents to close at $24.90 on volume of about 699,000 shares.

On Monday, the preferreds added 7 cents.

Elsewhere in the finance space, Bank of America’s 5% series LL non-cumulative preferred stock was relatively active but finished unchanged.

The preferreds (NYSE: BACPrN) closed level at $25.19 with about 637,000 shares trading.

On Monday, the preferreds shot up 16 cents.

Sector peer Wells Fargo’s 5.625% series Y non-cumulative perpetual class A preferreds saw a small gain.

The preferreds (NYSE: WFCPrY) gained 7 cents to close at $26.92 on volume of about 328,000 shares.

On Monday, the preferreds tacked on 16 cents.

Northern Trust weaker

Asset manager Northern Trust’s 5.85% series C non-cumulative perpetual preferred stock ended in a weaker position.

The preferreds (Nasdaq: NTRSP) shaved off 4 cents to close at $25.34 with about 293,000 shares trading.

Allstate improves

Meanwhile, insurance provider Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferreds spent the Tuesday session improving.

The preferreds (NYSE: ALLPrH) jumped up 21 cents to close at $26.47 on volume of about 225,000 shares.

On Monday, the preferreds improved by 26 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished down by 0.17%, reversing a 0.10% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was down 5 cents to $37.44.

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