TriState, United Community tap market; Atlantic Union tops par; Medley rises

By James McCandless

San Antonio, June 3 – In the midpoint of the week, the preferred market was largely positive as more new issuance came down the pipeline.

In the primary, TriState Capital Holdings, Inc. settled a $37.5 million add-on to its $1,000-par fixed-to-floating rate subordinated notes due May 15, 2030 with an initial coupon of 5.75% on Wednesday. The issue priced on May 29.

Also on Wednesday, United Community Banks, Inc. priced a $100 million offering of $25-par series I non-cumulative preferred stock with a dividend of 6.875% at par.

Leading the secondary on its first day, Atlantic Union Bankshares Corp.’s new $150 million 6.875% series A perpetual non-cumulative preferred stock ended above par.

Elsewhere in finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock was under pressure.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock was lifted.

Meanwhile, asset manager Medley LLC’s 7.25% senior notes due 2024 saw a boost by the end of the session.

REIT Ashford Hospitality Trust, Inc.’s 7.375% series G cumulative preferred stock improved as the day closed.

TriState prices

In the primary market, TriState settled a $37.5 million add-on to its $1,000-par fixed-to-floating rate subordinated notes (Kroll: BBB) due May 15, 2030 with an initial coupon of 5.75% that was priced on May 29.

The offering supplements the $60 million of notes outstanding.

Stephens Inc., PNC Capital Market LLC and Raymond James & Associates, Inc. are the joint bookrunners.

The coupon is fixed until May 15, 2025, then converts to a floating rate equal to Libor plus 536 basis points.

Coupons are payable May 15 and Nov. 15 of each year during the fixed-rate period. Beginning May 15, 2025, the interest rate will be payable quarterly on Feb. 15, May 15, Aug.15 and Nov. 15.

Union’s deal

Also, Union Community sold a $100 million offering of $25-par series I non-cumulative preferred stock (Kroll: BBB-) with a dividend of 6.875% at par.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Sept. 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par.

Atlantic Union tops par

Leading the secondary space on its first trading day, Atlantic Union’s new $150 million 6.875% series A perpetual non-cumulative preferred stock ended above par.

The preferreds, trading under the temporary symbol “AUBKL,” were seen closing at $25.14 on volume of about 2.6 million shares.

The deal priced on Tuesday.

Elsewhere in the finance space, Truist’s 5.25% series O non-cumulative perpetual preferred stock was under pressure.

The preferreds (NYSE: TFCPrO) were down 5 cents to close at $25.40 with about 408,000 shares trading.

On Tuesday, the preferreds declined by 16 cents.

Sector peer Synchrony’s 5.625% series A non-cumulative perpetual preferred stock was lifted, following the prevailing trend.

The preferreds (NYSE: SYFPrA) improved by 12 cents to close at $21.34 on volume of about 330,000 shares.

Medley boosted

Meanwhile, asset manager Medley’s 7.25% senior notes due 2024 saw a boost by the end of the Wednesday session.

The notes (NYSE: MDLQ) picked up $1.15 to close at $3.03 with about 343,000 notes trading.

Ashford better

Real estate investment trust Ashford Hospitality’s 7.375% series G cumulative preferred stock improved as the day came to a close.

The preferreds (AHTPrG) gained 95 cents to close at $8.54 on volume of about 249,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the session up by 0.18%, better than the 0.14% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was up 14 cents to $35.28.

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