Atlantic Union, Regions price preferreds; Public Storage negative; Truist drops

By James McCandless

San Antonio, June 2 – While the preferred space saw overall improvements, top traders ended the day under pressure.

In primary movement, Atlantic Union Bankshares Corp. priced a $150 million offering of series A perpetual non-cumulative preferred stock with a dividend of 6.875% at par of $25.00.

Also, Regions Financial Corp.’s priced a $350 million offering of $1,000-par series D non-cumulative perpetual preferred stock with a dividend of 5.75%.

At the top of secondary activity, REIT Public Storage’s 5.2% series W cumulative preferred stock finished on a negative track.

Meanwhile, in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock dropped.

Sector peer JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was relatively active but unchanged.

Insurance company Brighthouse Financial, Inc.’s 6.75% series B non-cumulative perpetual preferreds also trailed.

Elsewhere, in telecom, AT&T, Inc.’s 4.75% series C perpetual preferred stock finished the session with a modest rise.

Atlantic Union prices

In Tuesday primary movement, Atlantic Union priced a $150 million offering of series A perpetual non-cumulative preferred stock (Kroll: BBB-) with a dividend of 6.875% at par of $25.00.

There is a $22.5 million greenshoe.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, UBS Securities LLC and Piper Sandler & Co. are the bookrunners.

The preferreds are redeemable on or after Sept. 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Regions’ deal

Also, Regions Financial announced that it priced a $350 million offering of $1,000-par series D non-cumulative perpetual preferred stock (Ba1/BB+/BB) with a dividend of 5.75%.

There is no greenshoe.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC are the bookrunners.

The dividend is fixed until Sept. 15, 2025, then resets to the five-year Treasury rate plus 542.6 bps. The rate will reset every five years after the initial reset date.

The preferreds are redeemable within three months prior to each reset date or following a regulatory capital treatment event at par.

Public Storage

At the top of Tuesday’s secondary activity, real estate investment trust Public Storage’s 5.2% series W cumulative preferred stock finished on a negative track.

The preferreds (NYSE: PSAPrW) were down 20 cents to close at $25.50 on volume of about 932,000 shares.

Truist drops

Meanwhile, in the finance space, Truist’s 5.25% series O non-cumulative perpetual preferred stock dropped.

The preferreds (NYSE: TFCPrO) declined by 16 cents to close at $25.45 with about 619,000 shares trading.

On Monday, the preferreds shot up 21 cents.

Sector peer JPMorgan’s 4.75% series GG non-cumulative preferred stock was relatively active but finished the afternoon unchanged.

The preferreds (NYSE: JPMPrJ) held level to close at $25.45 on volume of about 250,000 shares.

On Monday, the preferreds garnered 5 cents.

Brighthouse trails

Insurance company Brighthouse’s 6.75% series B non-cumulative perpetual preferreds also trailed throughout the session.

The preferreds (Nasdaq: BHFAO) shaved off 12 cents to close at $25.31 with about 379,000 shares trading.

AT&T rises

Elsewhere, in telecom, AT&T’s 4.75% series C perpetual preferred stock finished the session with a modest rise.

The preferreds (NYSE: TPrC) tacked on 3 cents to close at $23.82 on volume of about 286,000 shares.

On Monday, the preferreds added 6 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day up by 0.12%, improving from the 0.09% slip in early Tuesday trading.

The iShares US Preferred Stock ETF was up 14 cents to $35.14.

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