Veritex taps $1,000-par market; Public Storage preferreds under par; AT&T drops

By James McCandless

San Antonio, Sept. 30 – The preferred market ended the Wednesday session backing off of gains made in early activity.

In primary activity, Veritex Holdings, Inc. priced a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Oct. 15, 2030 with an initial coupon of 4.125% at par.

As the day’s secondary leader, Public Storage’s new $250 million 3.875% series N cumulative preferred shares ended under par.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock dropped by the end of the day.

Meanwhile, in the finance space, Morgan Stanley’s 6.875% series F fixed-to-floating rate non-cumulative preferred stock was seen losing.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock joined the negative trend.

Elsewhere, Brookfield Infrastructure Partners LP’s 5.125% series 13 class A preferred limited partnership units improved.

Veritex prices

In primary activity, Veritex priced a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Oct. 15, 2030 (Kroll: BBB-) with an initial coupon of 4.125% at par on Wednesday.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 399.5 basis points.

The notes are redeemable on or after Oct. 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event, or if the company is required to register as an investment company at par.

Public Storage below par

As the day’s secondary volume leader, real estate investment trust Public Storage’s new $250 million 3.875% series N cumulative preferred shares ended under par.

The preferreds, trading under the temporary symbol “PSADL,” closed at $24.80 on volume of about 2.8 million shares.

The deal priced on Tuesday.

AT&T drops

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock dropped by the end of the day.

The preferreds (NYSE: TPrC) declined by 22 cents to close at $25.50 with about 426,000 shares trading.

On Tuesday, the preferreds added 5 cents.

Morgan Stanley loses

Meanwhile, in the finance space, Morgan Stanley’s 6.875% series F fixed-to-floating rate non-cumulative preferred stock was seen losing ground.

The preferreds (NYSE: MSPrF) were docked 15 cents to close at $27.15 on volume of about 311,000 shares.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock joined the negative trend.

The preferreds (NYSE: WFCPrZ) shaved off 9 cents to close at $25.14 with about 284,000 shares trading.

Brookfield up

Elsewhere, Brookfield Infrastructure’s5.125% series 13 class A preferred limited partnership units improved, going against the session’s trend.

The preferreds (NYSE: BIPPrA) picked up 12 cents to close at $25.75 on volume of about 295,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the afternoon down by 0.63%, reversing a 0.07% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was down 6 cents to $36.45.

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