Preferreds soften as hurricane damage eyed; week’s new issues buck day’s downward trend

By Stephanie N. Rotondo

Seattle, Sept. 8 – The preferred stock market waned along with the broader markets on Friday as investors worried about the overall economic cost of hurricanes Harvey and Irma.

The Wells Fargo Hybrid and Preferred Securities index dropped 24 basis points. The U.S. iShares Preferred Stock ETF declined 21 bps.

Despite the weaker tone of the day, deals priced during the week were faring rather well.

Global Net Lease Inc.’s $100 million of 7.25% series A cumulative redeemable preferred stock was pegged at $24.60 bid, $24.70 offered by one trader.

Another market source saw the issue closing at $24.62, though he noted that the volume weighted average price of $24.697 was “a bit better.”

Initial price talk was 6.875%.

TCF Financial Corp.’s $175 million of 5.7% series C noncumulative preferreds were meantime seen at $25.05 at the bell, with about 1.11 million shares trading.

The preferreds were quoted at par bid, $25.05 offered earlier in the day.

The temporary ticker is “TCFFP.”

And, Pennsylvania Real Estate Investment Trust’s $120 million of 6.875% series D cumulative redeemable perpetual preferred stock – a deal that came late Thursday – inched up a penny to close at $24.65.

The preferreds were offered at $24.60 at mid-morning, according to a trader.

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