Argo Group taps $25-par market; Wells Fargo declines; MetLife preferreds negative

By James McCandless

San Antonio, July 7 – As the preferred market activity came to a close on Tuesday, most of the day’s most active traders ended in worse positions.

The primary market saw Argo Group International Holdings, Ltd. price a $150 million offering of $25-par series A resettable fixed-rate preference shares with a dividend of 7%.

In secondary trading, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock finished with a decline.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock dropped.

Sector peer Bank of America Corp.’s 5% series LL non-cumulative preferred stock followed the prevailing trend.

Insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock also finished on the negative side.

Meanwhile, telecom services provider AT&T Inc.’s 4.75% series C perpetual preferred stock moved higher.

Argo prices

The primary market saw Argo Group price a $150 million offering of $25-par series A resettable fixed-rate preference shares (BB) with a dividend of 7%.

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

The dividend is resettable on Sept. 15, 2025 and every five years thereafter at Treasuries plus 671.2 basis points.

The preferreds are redeemable on or after Sept. 15, 2025 at par. Prior to that, the preferreds are redeemable after a change in tax law, a capital disqualification event or a ratings agency event at par.

Wells Fargo declines

Leading volume in secondary trading, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock finished with a decline.

The preferreds (NYSE: WFCPrZ) were down 15 cents to close at $23.56 on volume of about 259,000 shares.

Elsewhere in the finance space, JPMorgan’s 6% series EE non-cumulative preferred stock dropped.

The preferreds (NYSE: JPMPrC) dropped 11 cents to close at $27.46 with about 242,000 shares trading.

On Monday, the preferreds fell 18 cents.

Sector peer Bank of America’s 5% series LL non-cumulative preferred stock followed the market’s prevailing trend.

The preferreds (NYSE: BACPrN) shaved off 5 cents to close at $25.50 on volume of about 213,000 shares.

On Monday, the preferreds rose 9 cents.

MetLife off

Insurance company MetLife’s 4.75% series F non-cumulative preferred stock also finished the afternoon on the negative side.

The preferreds (NYSE: METPrF) slipped 2 cents to close at $24.90 with about 258,000 shares trading.

AT&T up

Meanwhile, telecom services provider AT&T’s 4.75% series C perpetual preferred stock moved higher.

The preferreds (NYSE: TPrC) improved by 5 cents to close at $24.33 on volume of about 216,000 shares.

On Monday, the preferreds rose 10 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.21%, widening a 0.10% dip from early Tuesday trading.

The iShares US Preferred Stock ETF was down 4 cents to $34.68.

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