Public Storage prices; Allstate under par; JPMorgan preferreds decline

By James McCandless

San Antonio, Nov. 5 – The preferred space saw a sustained decline on Tuesday, extending a negative run from the start of the week.

The primary market saw Public Storage price a $225 million offering of $25-par series J cumulative preferred shares at par with a dividend of 4.7%.

Leading the secondary in volume, Allstate Corp.’s new $300 million 4.75% series I fixed-rate non-cumulative perpetual preferred stock finished under par.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s new 4.75% series GG non-cumulative perpetual preferred stock declined.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock followed the negative trend.

Meanwhile, asset manager Northern Trust Corp.’s recent 4.7% series E non-cumulative perpetual preferreds closed the day better.

REIT PS Business Parks, Inc.’s 4.875% series Z cumulative preferred stock dived by the end of activity.

Public Storage prices

The Tuesday primary market saw Public Storage price a $225 million offering of $25-par series J cumulative preferred shares at par with a dividend of 4.7%.

There is a $33.75 million greenshoe.

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

Dividends will be payable quarterly on March 31, June 30, Sept. 30 and Dec. 31 of each year, beginning on March 31, 2020.

The preferreds are redeemable on or after Nov. 15, 2024 at par.

Allstate under par

Leading trading in the secondary, insurance provider Allstate’s new $300 million 4.75% series I fixed-rate non-cumulative perpetual preferred stock finished the day under par.

The preferreds, trading under the temporary symbol “ASTLZ,” closed under par at $24.91 on volume of about 1.5 million shares.

The deal priced on Monday.

JPMorgan dips

Elsewhere, in the finance space, JPMorgan’s new 4.75% series GG non-cumulative perpetual preferred stock declined throughout the day.

The preferreds, trading under the temporary symbol “JPGGL,” declined by 11 cents to close at $24.89 with about 1.4 million shares trading.

On Monday, the preferreds also fell 11 cents.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock followed the negative trend.

The preferreds (NYSE: COFPrI) shaved off 13 cents to close at $24.94 on volume of about 523,000 shares.

Northern Trust better

Meanwhile, asset manager Northern Trust’s recent 4.7% series E non-cumulative perpetual preferreds closed the day on better footing.

The preferreds, trading under the temporary symbol “NTREL,” gained 3 cents to close at $25.20 with about 849,000 shares trading.

PS Business dives

Real estate investment trust PS Business Parks’ 4.875% series Z cumulative preferred stock dived by the end of the session.

The preferreds (NYSE: PSBPrZ) fell 24 cents to close at $24.71 on volume of about 596,000 shares.

On Monday, the preferreds improved by 1 cent.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished down by 0.33%, worsening a 0.22% loss from early Tuesday trading.

The iShares US Preferred Stock ETF was down 14 cents to $37.25.

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