Morning Commentary: TriState prices; Deutsche Bank lower; Dominion $25-par notes down

By James McCandless

San Antonio, May 22 – A mixed start in the preferred market saw the Wells Fargo Hybrid & Preferred Securities Financial index begin up by 0.05%.

In the primary space, TriState Capital Holdings, Inc. priced a $70 million offering of $25-par series B fixed-to-floating rate non-cumulative perpetual preferred stock with an initial dividend of 6.375%.

There is a $10.5 million greenshoe.

The deal was announced Tuesday morning.

Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. are the joint bookrunners.

The preferreds are redeemable on or after July 1, 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed until July 1, 2026, then converts to a floating rate of Libor plus 408.8 basis points.

Leading secondary trading by volume, Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities and Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were both headed lower.

The 6.55% preferreds (NYSE: DXB) were down 2 cents to $24.99 on volume of about 48,000 shares.

The 8.05% preferreds (NYSE: DKT) were down 5 cents to $25.75 on volume of about 41,000 shares.

Elsewhere in finance, Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds opened with a decline.

The preferreds (NYSE: WFCPrQ) were off by 1 cent to $26.32 with about 38,000 shares trading.

Utilities name Dominion Energy, Inc.’s 5.25% 2016 series A enhanced junior subordinated notes due 2076 were trailing.

The notes (NYSE: DRUA) were down by 2 cents to $25.43 on volume of about 33,000 shares.

In the telecom space, AT&T, Inc.’s 5.35% global notes due 2066 were improving as the day began.

The notes (NYSE: TBB) gained 7 cents to $25.57 with about 27,000 notes trading.

Meanwhile, lender Federal Agricultural Mortgage Corp.’s 5.7% series D non-cumulative preferred stock was relatively active but flat to start.

The preferreds (NYSE: AGMPrD) were level at $25.09 on volume of about 25,000 shares.

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