Wells Fargo, Fulton Financial price; Flagstar on tap; U.S. Bancorp preferreds end lower

By James McCandless

San Antonio, Oct. 22 – During the Thursday session, the preferred space saw positivity, a reversal of the previous day’s losses.

Coming down the primary pipeline, Wells Fargo & Co. priced a $1.17 billion offering of $25-par series AA non-cumulative perpetual class A preferred stock with a dividend of 4.7% at par.

Also, Fulton Financial Corp. priced a $200 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock (Baa3) with a dividend of 5.125% at par

Flagstar Bancorp, Inc. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Leading in the secondary market, U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock drifted lower.

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

REIT Public Storage’s 4.625% series L and 3.875% series N cumulative preferred shares both rose.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock ended the session in a better position.

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

Wells Fargo prices

Coming down the primary pipeline, Wells Fargo priced a $1.17 billion offering of $25-par series AA non-cumulative perpetual class A preferred stock with a dividend of 4.7% at par on Wednesday.

The yield came under talk in the 4.75% to 4.875% area.

Wells Fargo Securities, LLC is the bookrunner.

The preferreds are redeemable on or after Dec. 15, 2025 at par. Prior to that, the preferreds are redeemable after a regulatory capital treatment event at par.

Fulton’s deal

Also, Fulton priced a $200 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock (Baa3) with a dividend of 5.125% at par on Thursday.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., Morgan Stanley & Co. LLC, Piper Sandler & Co. 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 at par.

Flagstar on deck

Flagstar announced plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Raymond James & Associates, Inc. and BofA Securities, Inc. are the bookrunners.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event or if the company is required the register as an investment company at par.

U.S. Bancorp lower

Leading in the secondary market, U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock drifted lower.

The preferreds, trading under the temporary symbol “UBKPL,” were down 4 cents to close at $24.65 on volume of about 881,000 shares.

On Wednesday, the preferreds ended under par.

Elsewhere in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock improved.

The preferreds (NYSE: WFCPrZ) tacked on 10 cents to close at $25.29 with about 255,000 shares trading.

On Wednesday, the preferreds gave up 7 cents.

Public Storage rises

Real estate investment trust Public Storage’s 4.625% series L and 3.875% series N cumulative preferred shares both rose as the afternoon ended.

The series L preferreds (NYSE: PSAPrL) tacked on 6 cents to close at $26.91 on volume of about 394,000 shares.

The series N preferreds (NYSE: PSAPrN) improved by 11 cents to close at $25.05 on volume of about 271,000 shares trading.

AT&T better

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock ended the session in a better position.

The preferreds (NYSE: TPrC) garnered 5 cents to close at $25.33 with about 304,000 shares trading.

On Wednesday, the preferreds lopped off 25 cents.

MetLife gains

Meanwhile, insurance carrier MetLife’s 4.75% series F non-cumulative preferred stock picked up steam by the day’s conclusion.

The preferreds (NYSE: METPrF) shot up 11 cents to close at $26.62 on volume of about 300,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed the session up by 0.41%, building on a 0.14% pickup from early Thursday trading.

The iShares US Preferred Stock ETF was up 29 cents to $36.84.

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