Preferred primary active; Progressive prices; QTS frees to trade; 1347 breaks par

By Abigail W. Adams

Portland, Me., March 9 – The primary market in the preferred space was active with two new deals pricing after the market close Thursday and a new deal launching prior to the market open Friday.

Bank of America Corp. priced $2.35 billion of perpetual fixed-to-floating rate non-cumulative preferred stock, series FF, after the market close on Thursday with a dividend of 5.875%, according to an FWP filing with the Securities and Exchange Commission.

QTS Realty Trust, Inc. priced $100 million of 7.125% series A cumulative redeemable perpetual preferred stock after the market close on Thursday.

Progressive Corp. priced a $500 million offering of 5.375% $1,000-par perpetual series B fixed-to-floating rate cumulative preferred shares (Baa1 / BBB+ / BBB+) after the market close on Friday, according to a FWP filing with the Securities and Exchange Commission.

As the primary market saw an uptick in activity, preferreds were down in trading in the secondary space according to market indicators.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.29% at the market close Friday. The U.S. iShares Preferred Stock ETF was up 0.07% early in Friday’s session but closed the day down 0.08%.

While the broader market was down, 1347 Property Insurance Holdings, Inc.’s recently priced 8% series A perpetual cumulative preferred stock broke above par on Friday after trading down since freeing for trade on the OTC market.

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