Morning Commentary: Bank of America prices; Wells Fargo positive; MetLife improves

By James McCandless

San Antonio, Jan. 22 – Wednesday’s start to preferred activity saw the Wells Fargo Hybrid & Preferred Securities Financial index open up by 0.03%.

In the primary space, Bank of America Corp. priced a $1.1 billion offering of $1,000-par series MM fixed-to-floating rate non-cumulative preferred stock (Baa3/BBB-/BBB-) with an initial dividend of 4.3% on Tuesday.

There is no greenshoe.

BofA Securities, Inc. is the bookrunner.

The dividend is fixed until Jan. 28, 2025, then converts to a floating rate of Libor plus 266.4 basis points.

The preferreds are redeemable on or after Jan. 28, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a capital treatment event.

Early secondary trading saw Wells Fargo & Co.’s new 4.75% series Z non-cumulative perpetual class A preferred stock trading on the positive side.

The preferreds, trading under the temporary symbol “WFCZL,” were up 1 cent to $25.09 on volume of about 223,000 shares.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 6% series EE and 5.75% series DD non-cumulative preferred stock were both trailing as the session began.

The series EE preferreds (NYSE: JPMPrC) were losing 3 cents to $27.95 with about 26,000 shares trading.

The series DD preferreds (NYSE: JPMPrD) were dipping 1 cent to $27.44 with about 19,000 shares trading.

Insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock was improving so far.

The preferreds (NYSE: METPrF) were adding 7 cents to $25.56 on volume of about 103,000 shares.

Meanwhile, shipping name Triton International Ltd.’s recent 6.875% series D cumulative redeemable perpetual preference shares followed the market trend.

The preferreds, trading under the temporary symbol “TRTDP,” were gaining 2 cents to $25.60 with about 29,000 shares trading.

Real estate investment trust UMH Properties, Inc.’s 6.375% series D cumulative redeemable preferreds were improving modestly.

The preferreds (NYSE: UMHPrD) were picking up 2 cents to $25.09 on volume of about 22,000 shares.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.