Morning Commentary: WhiteHorse prices; General Finance, U.S. Bancorp $25-pars on tap

By James McCandless

San Antonio, Oct. 20 – The preferred space began Tuesday weaker, though top traders were rising, with the Wells Fargo Hybrid & Preferred Securities Financial index opening down by 0.04%.

Coming down the primary pipeline, WhiteHorse Finance, Inc. sold $40 million of notes due Oct. 20, 2025 with a coupon of 5.375%.

Coupons are payable semiannually.

The coupon steps up to 6.375%, subject to conditions, if the company ceases to have an investment-grade rating.

Also, General Finance Corp. plans to price a $40 million offering of $25-par senior notes due 2025 with a coupon of 8% on Thursday.

There is a $6 million greenshoe.

D.A. Davidson & Co., B. Riley Securities, Inc. and Janney Montgomery Scott LLC are the bookrunners.

The notes are redeemable after two years at par plus a make-whole premium. Prior to that, the notes are redeemable after three years at 104.5, after four years at 102.25 and during the fifth year at par.

U.S. Bancorp said it plans to price an offering of $25-par series L non-cumulative perpetual preferred stock.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BofA Securities, Inc., RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Jan. 15, 2026 at par. Prior to that, the preferreds are redeemable after a regulatory capital treatment event.

Leading early secondary trading volume, real estate investment trust New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferreds were gaining some ground.

The preferreds (NYSE: NRZPrC) were up 1 cent to $18.51 on volume of about 46,000 shares.

Sector peer Public Storage’s 3.875% series N cumulative preferred shares were also improving as the session kicked off.

The preferreds (NYSE: PSAPrN) were tacking on 1 cent to $25.29 with about 26,000 shares trading.

Elsewhere, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was trending on the positive side.

The preferreds (NYSE: WFCPrZ) were up 2 cents to $25.31 on volume of about 30,000 shares.

JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock was also moving higher.

The preferreds (NYSE: JPMPrC) were gaining 6 cents to $28.11 with about 20,000 shares trading.

Meanwhile, insurance provider MetLife, Inc.’s 4.75% series F non-cumulative preferred stock also picked up steam.

The preferreds (NYSE: METPrF) were shifting up 3 cents to $26.77 on volume of about 22,000 shares.

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