Morning Commentary: American Finance prices; $25-par market jumps; National Retail sinks

By James McCandless

San Antonio, Sept. 5 – The preferred market started Thursday lower with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.03% as the primary space jumped with activity.

In the primary market, American Finance Trust, Inc. sold $75 million more of its $25-par 7.5% series A cumulative redeemable perpetual preferred stock at $25.25.

There is an $11.25 million greenshoe.

There are now 5,075,686 shares outstanding.

BMO Capital Markets Corp. and B. Riley FBR, Inc. are the joint bookrunners.

The preferreds are redeemable on or after March 26, 2024 at par. Prior to that, they are redeemable within 90 days after a delisting event or within 120 days after a change of control at par.

In secondary trading, the preferreds (Nasdaq: AFINP) were down 5 cents to $25.24 on volume of about 1 million shares.

Meanwhile, Youngevity International, Inc. said it plans to price a $10 million offering of series D cumulative redeemable perpetual preferred stock with a dividend of 9.75%.

Benchmark Co. LLC is the bookrunner.

The preferreds are redeemable after three years. Prior to that, they are redeemable within 120 days after a change of control.

Separately, Public Storage said it plans to sell an offering of $25-par series I cumulative preferred shares.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable after five years.

Also this morning, Fortress Transportation and Infrastructure Investors LLC said it plans to price an offering of $25-par series A fixed-to-floating rate cumulative perpetual redeemable preferred stock.

Morgan Stanley, J.P. Morgan Securities LLC, UBS Securities and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

The dividend is fixed until Sept. 15, 2024, then converts to Libor plus a spread.

The preferreds are redeemable on or after Sept. 15, 2024 at par. Prior to that, they are redeemable at $25.25 after a tax redemption event, at $25.25 within 120 days after a change of control or at $25.50 within 120 days after a rating event.

Elsewhere in the secondary, real estate investment trust National Retail Properties, Inc.’s 5.7% series E cumulative redeemable preferred stock was declining at the open.

The preferreds (NYSE: NNNPrE) were down 22 cents to $25.13 with about 68,000 shares trading.

Sector peer Annaly Capital Management, Inc.’s 6.75% series I fixed-to-floating rate cumulative redeemable preferreds were gaining, going against the early trend.

The preferreds (NYSE: NLYPrI) were improving by 11 cents to $25.54 on volume of about 56,000 shares.

Insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock was also under water as trading started.

The preferreds (NYSE: ALLPrH) were off by 7 cents to $26.32 with about 54,000 shares trading.

In the telecom space, AT&T, Inc.’s 5.35% global notes due 2066 followed the preferred secondary lower.

The notes (NYSE: TBB) were down 11 cents to $26.82 on volume of about 46,000 notes.

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