Morning Commentary: Ready Capital preps add-on; AXA trades below par; Allstate declines

By James McCandless

San Antonio, Nov. 21 – The preferred market started Thursday with a small decline as the Wells Fargo Hybrid & Preferred Securities Financial index began down by 0.01%.

The primary market remained steady as Ready Capital Corp. announced plans to price more of its $25-par senior notes due July 30, 2026 at par with a coupon of 6.2%.

Sandler O'Neill & Partners, LP and B. Riley FBR, Inc. are the joint bookrunners.

Interest is payable on Jan. 30, April 30, July 30 and Oct. 30 of each year, beginning on Jan. 30, 2020.

The notes are redeemable on or after July 30, 2022 and before July 30, 2025 at 101%, after July 30, 2025 at par and upon a change-of-control repurchase event at 101%.

American Financial Group, Inc. plans to price an offering of $25-par subordinated debentures due 2059.

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

The debentures are redeemable after five years. Prior to that, the debentures are redeemable within 90 days after a tax event or a rating agency event.

Meanwhile, Triumph Bancorp, Inc. intends to price an offering of fixed-to-floating rate subordinated notes due 2029, according to a 424B5 filed with the Securities and Exchange Commission.

Interest will accrue at a fixed rate for the first five years and at a rate based on Libor beginning in 2024.

The notes are non-callable for the first five years and then are callable at par on any interest payment date.

At the top of secondary trading, AXA Equitable Holdings, Inc.’s new $725 million 5.25% series A fixed-rate non-cumulative perpetual preferred stock was trading below par.

The preferreds, trading under the temporary symbol “AXQEL,” were seen at $24.86 on volume of about 5.7 million shares.

Elsewhere in the finance space, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock was gaining as the morning kicked off.

The preferreds (NYSE: SYFPrA) were improving by 13 cents to $25.51 with about 390,000 shares trading.

Sector peer CIT Group, Inc.’s 5.625% series B non-cumulative preferreds moved steadily downward.

The preferreds (NYSE: CITPrB) were falling 19 cents to $25.69 on volume of about 169,000 shares.

Meanwhile, insurance name Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock also started the day with a decline.

The preferreds (NYSE: ALLPrH) were losing 7 cents to $25.76 with about 103,000 shares trading.

Annuities provider American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferreds were positive.

The preferreds, trading under the temporary symbol “AQYVL,” were better by 5 cents to $25.85 on volume of about 55,000 shares.

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