Morning Commentary: Preferred primary busy; Citigroup lower; MFA Financial trades down

By James McCandless

San Antonio, June 16 – The Tuesday session in the preferred space started on higher ground with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.83%.

In the primary market, Triumph Bancorp, Inc. announced plans to price an offering of $25-par series C fixed-rate non-cumulative perpetual preferred stock.

B. Riley FBR, Inc., D.A. Davidson & Co., Janney Montgomery Scott LLC and Oppenheimer & Co. Inc. are the bookrunners.

The preferreds are redeemable on or after June 30, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, Truist Financial Corp. plans to price an offering of series Q fixed-rate reset non-cumulative perpetual preferred stock.

There is a liquidation preference of $1,000 per share.

RBC Capital Markets, LLC, Goldman Sachs & Co. LLC and SunTrust Robinson Humphrey, Inc. are the bookrunners.

The dividend resets on Sept. 30, 2030 and every 10 years thereafter at the rate of the 10-year Treasury plus a spread.

Separately, Office Properties Income Trust said it intends to sell $25-par fixed-rate senior notes due 2050.

The notes are callable at par after five years.

BofA Securities Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., UBS Securities LLC and Wells Fargo Securities LLC are the bookrunners.

The company plans to list the notes on the Nasdaq under the symbol “OPINL.”

NBT Bancorp Inc. joined the fray with its plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Keefe, Bruyette & Woods, Inc. and Piper Sandler & Co. are the bookrunners.

The dividend is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable upon the occurrence of a tax event or tier 2 capital event.

At the top of early secondary activity, Citigroup Capital XIII’s 7.875% fixed-to-floating trust preferred securities opened on the negative side.

The preferreds (NYSE: CPrN) were down 3 cents to $27.05 on volume of about 330,000 shares.

Elsewhere in the finance space, First Horizon National Corp.’s 6.5% series E non-cumulative perpetual preferred stock was shifting higher.

The preferreds (NYSE: FHNPrE) were improving by 13 cents to $25.22 with about 77,000 shares trading.

Real estate investment trust MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferreds were getting a boost.

The preferreds (NYSE: MFAPrC) were jumping up $2.89 to $18.92 on volume of about 166,000 shares.

The company announced early Tuesday that it had raised $500 million in new capital with Apollo Global Management and entered commitments for a $1.65 billion borrowing facility.

Sector peer Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferred shares were also tracking higher.

The preferreds (NYSE: PEIPrC) were gaining $1.02 to $8.02 with about 107,000 shares trading.

Meanwhile, retirement services name Athene Holding Ltd.’s 6.375% series C fixed-rate reset perpetual non-cumulative preference shares were rising.

The preferreds (NYSE: ATHPrC) were tacking on 37 cents to $25.25 on volume of about 98,000 shares.

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