PS Business Parks prices; Citizens Financial improves; Energy Transfer preferreds positive

By James McCandless

San Antonio, Oct. 24 – The preferred space saw non-cohesive movements on Thursday, exemplified by the activity of top traders.

Real estate investment trust PS Business Parks, Inc. priced a $300 million offering of $25-par series Z cumulative preferred stock with a dividend of 4.875%, according to a press release.

Leading secondary trading volume, Citizens Financial Group, Inc.’s new 5% series E fixed-rate non-cumulative perpetual preferred stock improved.

Elsewhere in finance, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds saw another rise.

5.75% series U cumulative preferred stock took a dive.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were positive.

In communications, Qwest Corp.’s 6.5% notes due 2056 were pushed lower.

PS Business Parks prices

In the primary space, PS Business priced a $300 million offering of $25-par series Z cumulative preferred stock with a dividend of 4.875%.

There is a greenshoe.

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

The preferreds are redeemable after five years. Prior to that, the preferreds are redeemable at the company’s option to preserve its status as a real estate investment trust.

Meanwhile, its established 5.75% series U cumulative preferred stock spent the day diving.

The preferreds (NYSE: PSBPrU) dived 50 cents to close at $25.30 on volume of about 323,000 shares.

Citizens improves

At the top of the preferred secondary for the third straight day, Citizens Financial’s new 5% series E fixed-rate non-cumulative perpetual preferred stock improved.

The preferreds, trading under the temporary symbol “CFGZL,” were up 3 cents to $25.13 on volume of about 1.1 million shares.

On Wednesday, the preferreds lost 2 cents.

Elsewhere in the finance space, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds saw another rise in the Thursday session.

The preferreds (NYSE: COFPrI) added 6 cents to close at $25.28 with about 517,000 shares trading.

On Wednesday, the preferreds picked up 6 cents.

Energy Transfer up

Oil and gas name Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were positive by the end of trading.

The preferreds (NYSE: ETPPrE) tacked on 5 cents to close at $25.67 with about 237,000 shares trading.

Qwest lower

In the communications space, Qwest’s 6.5% notes due 2056 were pushed lower by the close.

The notes (NYSE: CTBB) gave back 10 cents to close at $25.35 on volume of about 204,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended better by 0.05%, maintaining much of the 0.06% rise from early Thursday trading.

The iShares US Preferred Stock ETF was down 1 cent to $37.67.

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