First Mid, Signature Bank price; Public Storage gains; Bank of America preferreds boosted

By James McCandless

San Antonio, Oct. 1 – Closing out the Thursday session, the preferred space saw blanket positivity throughout the day.

Coming down the primary pipeline, First Mid Bancshares, Inc. priced a $96 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes with an initial coupon of 3.95% at par.

Also, Signature Bank priced a $375 million offering of fixed-to-floating rate subordinated notes due 2030 with an initial coupon of 4%.

At the top of secondary activity again, Public Storage’s new 3.875% series N cumulative preferred shares gained.

Elsewhere, in the finance space, Bank of America Corp.’s 5% series LL non-cumulative preferreds were boosted.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock followed the upward track.

Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities picked up steam.

Meanwhile, utilities provider Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred shares dipped.

First Mid prices

Coming down the Thursday primary pipeline, First Mid priced a $96 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes (Kroll: BBB) with an initial coupon of 3.95% at par on Thursday.

Piper Sandler & Co., Janney Montgomery Scott LLC and Stephens Inc. are the bookrunners.

The coupon is fixed until Oct. 15, 2025, then converts to a floating rate of the three-month SOFR plus 383 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, regulatory capital event or if the company is required to register as an investment company.

Signature’s deal

Also Signature Bank priced a $375 million offering of fixed-to-floating rate subordinated notes due 2030 with an initial coupon of 4% on Thursday.

Coupons are payable on April 15 and Oct. 15 starting on April 15, 2021, switching to Jan. 15, April 15, July 15 and Oct. 15 on Oct. 15, 2025.

On Oct. 15, 2025, the coupon coverts to a floating rate of the three-month Ameribor plus 389 bps.

Public Storage gains

At the top of secondary activity for a second day, real estate investment trust Public Storage’s new 3.875% series N cumulative preferred shares gained.

The preferreds, trading under the temporary symbol “PSADL,” were up 2 cents to close at $24.82 on volume of about 572,000 shares trading.

On Wednesday, the preferreds ended under par.

Bank of America boosted

Elsewhere, in the finance space, Bank of America’s 5% series LL non-cumulative preferreds were boosted by the end of the afternoon.

The preferreds (NYSE: BACPrN) jumped up 33 cents to close at $26.57 with about 331,000 shares trading.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock followed the market’s upward track.

The preferreds (NYSE: WFCPrZ) moved up 15 cents to close at $25.29 on volume of about on volume of about 263,000 shares.

On Wednesday, the preferreds shaved off 9 cents.

Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities picked up steam throughout the day.

The preferreds (NYSE: ALLYPrA) rose 6 cents to close at $25.03 with about 220,000 shares trading.

Just Energy dips

Meanwhile, utilities services provider Just Energy’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred shares dipped.

The preferreds (NYSE: JEPrA) declined by 34 cents to close at $3.02 on volume of about 174,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day up by 1.07%, increasing from a 0.36% gain in early Thursday trading.

The iShares US Preferred Stock ETF was up 23 cents to $36.52.

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