General Motors taps $1,000-par market; Ally Financial improves; AT&T preferreds better

By James McCandless

San Antonio, Sept. 9 – After taking a precipitous drop the previous day, the preferred space saw a recovery on Wednesday.

The primary pipeline saw General Motors Financial Co., Inc. price a $500 million offering of $1,000-par series C fixed-rate reset cumulative perpetual preferred stock with a dividend of 5.7% at par.

Leading the secondary activity, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended with an improvement.

Elsewhere in the finance space, PNC Financial Services Group, Inc.’s 5.375% series Q non-cumulative perpetual preferred stock finished on the positive side.

Telecom services giant AT&T, Inc.’s 4.75% series C perpetual preferred stock was in a better position when the afternoon ended.

Meanwhile, Monmouth Real Estate Investment Corp.’s 6.125% series C cumulative redeemable preferred stock gained.

Sector peer MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferreds declined, going against the trend.

General Motors prices

The Wednesday primary pipeline saw General Motors Financial price a $500 million offering of $1,000-par series C fixed-rate reset cumulative perpetual preferred stock (BB+) with a dividend of 5.7% at par.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the bookrunners.

On Sept. 30, 2030 and every five years thereafter, the dividend resets to the rate of Treasuries plus 499.7 basis points.

The preferreds are redeemable on Sept. 30, 2030 and any dividend payment date.

Ally improves

Leading the midweek secondary activity, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended the session with an improvement.

The preferreds (NYSE: ALLYPrA) were up 4 cents to close at $24.72 on volume of about 251,000 shares trading.

Elsewhere in the finance space, PNC’s 5.375% series Q non-cumulative perpetual preferred stock finished on the positive side.

The preferreds (NYSE: PNCPrQ) tacked on 1 cent to close at $25.00 with about 186,000 shares trading.

AT&T better

Telecom services giant AT&T’s 4.75% series C perpetual preferred stock was in a better position when the afternoon ended.

The preferreds (NYSE: TPrC) garnered 19 cents to close at $25.27 on volume of about 247,000 shares.

On Tuesday, the preferreds were docked 20 cents.

Monmouth gains

Meanwhile, real estate investment trust Monmouth’s 6.125% series C cumulative redeemable preferred stock gained ground.

The preferreds (NYSE: MNRPrC) picked up 10 cents to close at $25.00 with about 202,000 shares trading.

Sector peer MFA Financial’s 6.5% series C fixed-to-floating rate cumulative redeemable preferreds declined.

The preferreds (NYSE: MFAPrC) dropped by 22 cents to close at $18.56 on volume of about 190,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session with a 0.63% boost, pushing higher than the 0.36% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was up 31 cents to $36.27.

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