Preferreds up; Huntington Bancshares sells $500 million preferreds; Wells Fargo active

By Abigail W. Adams

Portland, Me., Feb. 27 – Preferreds continued to see gains on Tuesday even as the broader equity markets saw losses.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.09% in early trading Tuesday. The gains continued throughout the session with the index closing up 0.12%.

The U.S. iShares Preferred Stock ETF was up 0.02% in early trading. The ETF also continued to see gains and closed Tuesday up 0.11%.

After a lull in primary market activity for much of February, the primary market was active on Tuesday.

Huntington Bancshares Inc. priced $500 million of 5.7% series E fixed-to-floating rate non-cumulative perpetual preferred stock after the market close Tuesday.

The preferred stock will be sold as depositary shares with a liquidation preference of $1,000 per share, representing a 1/100th interest in the series E preferred stock, according to the preliminary prospectus.

The offering from the Columbus, Ohio-based diversified regional bank holding company is the second preferred stock deal to price in February.

Some of Wells Fargo & Co.’s preferreds saw high-volume trading on Tuesday as the San Francisco-based banking and financial services holding company was again the subject of headlines. After starting the day with gains, the preferreds ended the day mixed.

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