Morning Commentary: Fortress to tap market; American Equity gains; AXA active, level

By James McCandless

San Antonio, Nov. 22 – The preferred space began the last day of the week with a gain as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.15%.

Keeping up activity in the primary market, Fortress Transportation & Infrastructure Investors LLC plans to price an offering of $25-par series B fixed-to-floating rate cumulative perpetual redeemable preferred shares at par.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

Dividends are payable on March 15, June 15, Sept. 15 and Dec. 15 of each year, commencing on March 15, 2020.

The dividend is fixed until Dec. 15, 2024, then converts to a floating rate of Libor plus a spread.

Eagle Point Credit Co. Inc. plans to sell up to $25 million more of its 7.75% series B term preferred stock due Oct. 30, 2026.

The company is also offering $125 million of its common stock.

B. Riley FBR, Inc. and National Securities Corp. are the placement agents.

The preferreds are redeemable on or after Oct. 29, 2021 at par.

Leading in the secondary, annuities name American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferred stock was gaining as the day started.

The preferreds, trading under the temporary symbol “AQYVL,” were up 3 cents to $25.73 on volume of about 438,000 shares.

Elsewhere, in the finance space, AXA Equitable Holdings, Inc.’s new 5.25% series A fixed-rate non-cumulative perpetual preferred stock was active but unchanged.

The preferreds, trading under the temporary symbol “AXQEL,” were level at $24.87 with about 170,000 shares trading.

Sector peer Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were also rigid as the session began.

The preferreds (NYSE: DKT) were holding at $25.43 on volume of about 63,000 shares.

Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds were improving.

The preferreds (NYSE: SYFPrA) were better by 2 cents to $25.40 with about 63,000 shares trading.

Meanwhile, real estate investment trust Global Net Lease, Inc.’s new 6.875% series B cumulative redeemable perpetual preferred stock was under pressure.

The preferreds, trading under the temporary symbol “GBLNP,” were losing 15 cents to $24.65 on volume of about 75,000 shares.

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