Morning Commentary: W.R. Berkley, Medallion on tap; AT&T edges lower; AXA improves

By James McCandless

San Antonio, Dec. 9 – The preferred space saw mixed movements from top traders as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.09%.

Opening the week’s primary activity, W.R. Berkley Corp. said it plans to price an offering of $25-par subordinated debentures due Dec. 30, 2059 at par.

Morgan Stanley & Co. LLC, BofA Securities, Inc., UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The debentures are redeemable on or after Dec. 30, 2024 at par. Prior to that, the debentures are redeemable within 90 days after a tax event at par or within 90 days after a rating agency event at 102.

Also, Medallion Financial Corp. plans to price an offering of $25-par series F fixed-to-floating rate non-cumulative perpetual preferred stock.

Sandler O’Neill + Partners, LP, B. Riley FBR Inc. and Ladenburg Thalmann & Co. Inc. are the joint bookrunners.

Leading early secondary trading volume, telecom name AT&T Inc.’s new $1.2 billion 5% series A perpetual preferred stock opened on the negative side.

The preferreds, trading under the temporary symbol “ATATL,” were down 1 cent to $24.91 on volume of about 225,000 shares.

Elsewhere, in the finance space, AXA Equitable Holdings, Inc.’s 5.25% series A fixed-rate non-cumulative perpetual preferreds were improving early.

The preferreds (NYSE: EQHPrA) were adding 3 cents to $25.08 with about 117,000 shares trading.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was also rising.

The preferreds (NYSE: COFPrI) were gaining 8 cents to $24.78 on volume of about 47,000 shares.

Wells Fargo & Co.’s 6% series T non-cumulative perpetual class A preferreds were under pressure as the session started.

The preferreds (NYSE: WFCPrT) were shaving off 1 cent to $25.31 with about 37,000 shares trading.

Transport leaser Fortress Transportation & Infrastructure Investors LLC’s 8% series B fixed-to-floating rate cumulative perpetual redeemable preferred shares were improving.

The preferreds (NYSE: FTAIPrB) were rising 6 cents to $25.54 on volume of about 54,000 shares.

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