American Homes, Seaspan sell preferreds; Bank of America better; AllianzGI fund gains

By James McCandless

San Antonio, Sept. 12 – The preferred stock primary market saw two new issues on Wednesday as financial names dominated the secondary space.

American Homes 4 Rent priced a $100 million offering of $25-par series H cumulative perpetual preferreds with a divided at 6.25%.

Seaspan Corp. sold a $150 million offering of series I fixed-to-floating rate cumulative redeemable perpetual preferred shares with an initial dividend of 8%.

Meanwhile, Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock gained in secondary trading.

AllianzGI Convertible & Income Fund II’s new $109 million of 5.5% series A cumulative preferred shares continued to rise.

Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities fell.

American Home prices

In the primary market, American Homes 4 Rent priced a $100 million offering of $25-par series H cumulative redeemable perpetual preferred shares (Ba1/BB) at par with a divided at 6.25%.

There is a $15 million greenshoe.

Wells Fargo Securities, LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners. J.P. Morgan Securities LLC and Raymond James & Associates, Inc. are lead managers.

The preferreds are redeemable after five years. Prior to that, they are redeemable within 120 days upon the occurrence of a change of control.

Seaspan taps market

Also, Seaspan sold a $150 million offering of series I fixed-to-floating rate cumulative redeemable perpetual preferred shares with an initial dividend of 8%.

The preferreds are redeemable after five years.

The dividend is fixed until Oct. 30, 2023, then converts to Libor plus 500.8 bps.

Morgan Stanley, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Stifel, Nicolaus & Co., Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

Bank of America gains

Meanwhile, Bank of America’s 5.875% series HH non-cumulative preferred stock improved, leading secondary trading.

The preferreds (NYSE: BACPrK) were up 6 cents to close at $25.53 on volume of about 312,000 shares.

AllianzGI fund nears par

Elsewhere, AllianzGI Convertible & Income Fund II’s recent $109 million of 5.5% series A cumulative preferreds rose again, nearing par.

The preferreds, trading under the temporary symbol “NCZIP,” were up 14 cents to close at $24.98 with about 267,000 shares trading.

On Tuesday, the preferreds rose 4 cents.

Deutsche Bank down

Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities declined.

The preferreds (NYSE: DKT) were down 5 cents to $25.87 on volume of about 245,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.07% at market close, giving back a 0.05% gain in early trading on Wednesday.

The iShares US Preferred Stock ETF was up 4 cents to $37.30.

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