Morning Commentary: First Midwest Bancorp preferreds on tap; Stifel trading above par

By James McCandless

San Antonio, May 13 – The preferred market started with continued negativity on Wednesday as the Wells Fargo Hybrid & Preferred Securities Financial index began down by 0.29%.

In early primary activity, First Midwest Bancorp, Inc. announced plans to price an offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock.

BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Aug. 20, 2025. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Leading the morning’s secondary trading, Stifel Financial Corp.’s new $200 million 6.125% series C non-cumulative preferred stock was seen moving just above par.

The preferreds, trading under the temporary symbol “STFLL,” were spotted at $25.01 on volume of about 634,000 shares.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was under pressure.

The preferreds (NYSE: JPMPrJ) were off 3 cents to $24.78 with about 52,000 shares trading.

Real estate investment trust Rexford Industrial Realty, Inc.’s 5.625% series C cumulative redeemable preferreds were pushing upward, going against the trend.

The preferreds (NYSE: REXRPrC) were improving by 22 cents to $25.02 on volume of about 82,000 shares.

Sector peer Public Storage’s 4.9% series E cumulative preferred shares were also gaining ground as the session started.

The preferreds (NYSE: PSAPrE) were picking up 6 cents to $25.08 with about 73,000 shares trading.

Meanwhile, telecom name AT&T Inc.’s 5% series A cumulative perpetual preferred stock and its 4.75% series C perpetual preferred stock were both slightly lower.

The series A preferreds (NYSE: TPrA) were off 1 cent to $24.93 on volume of about 50,000 shares.

The series C preferreds (NYSE: TPrC) edged 3 cents lower to $22.86 on volume of about 46,000 shares.

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