Morning Commentary: Scorpio, Hancock Whitney on tap; Brighthouse up; JPMorgan lifted

By James McCandless

San Antonio, May 26 – The preferred market began a holiday-shortened week on the upswing as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.68%.

In the primary space, Scorpio Tankers Inc. plans to price an offering of $25-par fixed-rate senior notes due 2025.

B. Riley FBR, Inc., Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Co., LLC are the joint bookrunners.

The notes are redeemable on or after June 30, 2022 and prior to June 30, 2023 at 102%, on or after June 30, 2023 and prior to June 30, 2024 at 101% or after June 30, 2024 at par. Prior to June 30, 2022, the notes are redeemable after a change of control at 104%.

Also, Hancock Whitney Corp. announced plans to sell an offering of $25-par subordinated notes due June 15, 2060 at par.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Piper Sandler & Co., UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

At the top of early Tuesday secondary activity, insurance provider Brighthouse Financial Inc.’s recent 6.75% series B non-cumulative perpetual preferred stock was pushing upward.

The preferreds (Nasdaq: BHFAO) were up 10 cents to $25.10 on volume of about 239,000 shares.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was also being lifted higher.

The preferreds (NYSE: JPMPrJ) were adding 15 cents to $24.86 with about 113,000 shares trading.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the early trend.

The preferreds (NYSE: ALLYPrA) were picking up 22 cents to $23.00 on volume of about 89,000 shares.

First Horizon National Corp.’s 6.5% series E non-cumulative perpetual preferreds opened the session improving.

The preferreds, trading under the temporary symbol “FHNCL,” were tacking on 7 cents to $24.79 with about 60,000 shares trading.

Meanwhile, real estate investment trust Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferred shares were declining, going against the grain.

The preferreds (NYSE: PEIPrC) were dipping 4 cents to $6.36 on volume of about 54,000 shares.

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