Allstate taps $25-par market; JPMorgan preferreds negative; Triton drops

By James McCandless

San Antonio, Nov. 4 – The preferred market ended the first day of the week with mixed activity, with the highest-volume traders trending lower.

In the primary market, Allstate Corp. priced a $300 million offering of $25-par series I fixed-rate non-cumulative perpetual preferred stock at par with a dividend of 4.75%.

Leading the day’s trading activity, JPMorgan Chase & Co.’s new 4.75% series GG non-cumulative perpetual preferred stock saw negativity.

Elsewhere in finance, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended slightly higher.

Sector peer Citizens Financial Group, Inc.’s 5% series E fixed-rate non-cumulative perpetual preferred stock was under pressure.

Shipping company Triton International Ltd.’s new 7375% series C cumulative redeemable perpetual preference shares dropped.

Meanwhile, REIT PS Business Parks, Inc.’s 4.875% series Z cumulative preferred stock ended in a better position.

Allstate prices

In the primary market, Allstate priced a $300 million offering of $25-par series I fixed-rate non-cumulative perpetual preferred stock (Baa2/BBB) at par with a dividend of 4.75%.

There is no greenshoe.

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

The preferreds are redeemable on or after Jan. 15, 2025. Prior to that, the preferreds are redeemable within 90 days after a ratings agency event at $25.50, within 90 days after a regulatory capital event at par and on any dividend payment date on or after the initial optional redemption date at par.

JPMorgan negative

At the top of secondary trading, JPMorgan’s new 4.75% series GG non-cumulative perpetual preferred stock saw negativity throughout the session.

The preferreds, trading under the temporary symbol “JPGGL,” were down 11 cents to close at $25.00 on volume of about 2.4 million shares.

On Friday, the preferreds closed at $25.10.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended the day slightly higher.

The preferreds (NYSE: ALLYPrA) picked up 2 cents to close at $26.40 with about 413,000 shares trading.

On Friday, the preferreds declined by 3 cents.

Sector peer Citizens Financial’s 5% series E fixed-rate non-cumulative perpetual preferred stock was under pressure.

The preferreds (NYSE: CFGPrE) lost 7 cents to close at $25.00 on volume of about 314,000 shares.

Triton drops

Shipping company Triton’s new 7375% series C cumulative redeemable perpetual preference shares dropped by the close.

The preferreds, trading under the temporary symbol “TRTOF,” shaved off 17 cents to close at $24.98 with about 871,000 shares trading.

On Friday, the preferreds landed at $25.10.

PS Business better

Meanwhile, real estate investment trust PS Business Parks’ 4.875% series Z cumulative preferred stock ended trading in a better position.

The preferreds, trading under the temporary symbol “PSPBZ,” improved by 1 cent to close at $24.95 on volume of about 402,000 shares.

On Friday, the preferreds rose by 4 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index closed down 0.01%, gaining back some of the 0.07% loss from early Monday trading.

The iShares US Preferred Stock ETF was up 4 cents to $37.39.

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