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.

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.

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

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

Telecom services giant AT&T, Inc.’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.

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