W.R. Berkley taps $25-par market; Bank of America lower; Just Energy preferreds dip

By James McCandless

San Antonio, Sept. 16 – In the middle of the week, the preferred space saw another day of declines across several sectors.

The primary market saw W.R. Berkley Corp. sell a $250 million offering of $25-par 4.25% subordinated debentures due Sept. 30, 2060 at par.

Moving along the top of the secondary, Bank of America Corp.’s 5% series LL non-cumulative preferred stock was pushed lower.

Elsewhere in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was similarly weakened.

Sector peer Capital One Financial Corp.’s new 4.625% series K fixed-rate non-cumulative perpetual preferred stock fell under pressure.

Utilities provider Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferreds dipped.

Meanwhile, insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock followed the negative trend.

W.R. Berkley prices

The primary market saw W.R. Berkley sell a $250 million offering of $25-par 4.25% subordinated debentures due Sept. 30, 2060 (Baa2/BBB-) at par.

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

The debentures are redeemable on or after Sept. 30, 2025 at par. Prior to that, the debentures are redeemable within 90 days after a tax event at par or within 90 days after a rating agency event at 102% of par.

Bank of America lower

Moving along the top of Wednesday secondary activity, Bank of America’s 5% series LL non-cumulative preferred stock was pushed lower.

The preferreds (NYSE: BACPrN) were down 2 cents to close at $26.50 on volume of about 500,000 shares.

Elsewhere in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock was similarly weakened as the afternoon ended.

The preferreds (NYSE: WFCPrZ) shed 4 cents to close at $24.93 with about 450,000 shares trading.

On Tuesday, the preferreds rose 3 cents.

Sector peer Capital One’s new 4.625% series K fixed-rate non-cumulative perpetual preferred stock fell under pressure.

The preferreds, trading under the temporary symbol “COFKL,” were pushed down 15 cents to close at $24.10 on volume of about 226,000 shares.

On Tuesday, the preferreds shed 10 cents.

Just Energy dips

Utilities provider Just Energy’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferreds dipped by the close of activity.

The preferreds (NYSE: JEPrA) dived 52 cents to close at $1.73 with about 264,000 shares trading.

MetLife off

Meanwhile, insurance company MetLife’s 4.75% series F non-cumulative preferred stock followed the market’s negative trend.

The preferreds (NYSE: METPrF) gave up 23 cents to close at $26.25 on volume of about 226,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day up by 0.03%, giving back some of the 0.12% gain in early Wednesday trading.

The iShares US Preferred Stock ETF was up 6 cents to $36.68.

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