Bank of Montreal prices $1.25 billion; Seritage Growth sells preferreds; Vornado gains

By Cristal Cody

Tupelo, Miss., Dec. 7 – Bank of Montreal priced $1.25 billion of fixed-to-floating rate subordinated notes due Dec. 15, 2032 on Thursday.

Also in the primary market, Seritage Growth Properties sold $70 million of $25-par series A cumulative redeemable perpetual preferred shares.

Preferred stocks improved over the session.

The Wells Fargo Hybrid and Preferred Securities index rose 14 basis points.

The U.S. iShares Preferred Stock ETF closed up 21 bps.

In new issue trading, Vornado Realty Trust’s 5.25% split-rated series M cumulative redeemable perpetual preferred stock climbed a dime to head out at $24.80 on Thursday in over-the-counter trading under the temporary symbol “VNNDP.”

The company sold $300 million of the $25-par preferreds (Baa3/BBB-/BB+) on Monday.

Elsewhere, Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) fell 3 cents to close at $25.57 on Thursday.

The preferred stock is not expected to be called on its first optional call date, according to a market source. Wells Fargo’s 8% preferreds have a call date of Dec. 15, 2017.

In its deal, Seritage Growth Properties priced $70 million of $25-par 7% series A cumulative redeemable perpetual preferred stock, according to an FWP filed with the SEC.

The company sold 2.8 million shares. The deal includes an over-allotment option for 420,000 shares.

The liquidation preference is $25.00 per preferred.

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