U.S. Bancorp prices new preferreds; Oaktree improves; CAI International finishes under par

By James McCandless

San Antonio, Aug. 7 – The preferred space remained fixed on newer issues as more came to the primary market Tuesday.

U.S. Bancorp priced $575 million of $25-par series K non-cumulative perpetual preferred stock with a dividend of 5.5%.

Oaktree Capital Group, LLC’s new $235 million of 6.55% series B preferred units gained in Tuesday trading.

CAI International’s new $42.5 million 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred stock ended below par

Among established issues, Wells Fargo & Co.’s 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferred stock also ended flat.

U.S. Bancorp prices

U.S. Bancorp priced $575 million of $25-par series K non-cumulative perpetual preferred stock with a dividend of 5.5%.

The deal was announced Tuesday morning.

There is no greenshoe.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

Oaktree up

Oaktree’s new $235 million of 6.55% series B preferred units gained in Tuesday trading.

The preferreds, trading under the temporary symbol “OKTGP,” were up 2 cents to close at $24.82 on volume of about 748,000 shares.

On Monday, the preferreds were level.

The deal was priced on Aug. 2.

CAI below par

CAI International’s new $42.5 million of 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred stock ended below par on their first day of trading after pricing late Monday.

The preferreds, trading under the temporary symbol “CAIIP,” were seen trading at $24.90 at market close with about 436,000 shares exchanged.

Wells Fargo level

Wells Fargo’s 6.625% series R fixed-to-floating rate non-cumulative preferreds were flat despite active trading.

The preferreds (NYSE: WFCPrR) were level at $27.53 on volume of about 436,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.04% at market close after dropping 0.06% in early trading Tuesday.

The iShares US Preferred Stock ETF was down 1 cent to $37.48. The ETF picked up 2 cents on Monday.

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