AT&T taps $25-par market; New Residential under par; Wells Fargo preferreds negative

By James McCandless

San Antonio, Feb. 12 – In the middle of the week, the preferred market experienced blanket negativity.

Telecom services provider AT&T, Inc. priced a $1.75 billion offering of $25-par series C perpetual preferred stock on Wednesday with a dividend of 4.75% at par.

The company’s established 5% series A cumulative perpetual preferred stock dropped.

Leading volume on its first day, REIT New Residential Investment Corp.’s new $350 million 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock finished below par. The preferreds, trading under the temporary symbol “NRESP,” closed at $24.90 on volume of about 4.5 million shares.

Sector peer AGNC Investment Corp.’s recent 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was also under pressure, declining by 4 cents to close at $24.89 with about 870,000 shares trading.

Meanwhile, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds weakened by the end of the session.

Also in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock followed the market downward.

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