Jernigan Capital preferreds off after at-the-market offering; Allstate notes active

By James McCandless

San Antonio, April 2 – The preferred stock market started the week actively as newer issues drive trading.

Jernigan Capital, Inc.’s $45 million at-the-market offering for its 7% series B cumulative redeemable perpetual preferred stock saw losses at the beginning of the week.

Allstate Corp. continued to see active trading with its new $500 million of $25-par series G perpetual preferred shares.

Bank of America Corp.’s preferreds were trading again after the issuer announced last week that it would redeem all series M and some series K preferreds.

Jernigan series B busy

After Jernigan Capital appended its 7% series B cumulative redeemable perpetual preferred stock at par of $25 last Thursday, bringing the amount it is selling to $45 million, market sources reported that trading continued into Monday. The original pricing in January was for $37.5 million, or 1.5 million shares, with a 7% dividend.

The series B preferreds lost 4 cents to close at $23.16, chipping away at some of the gains made Thursday.

Allstate trades

Allstate’s new upsized $500 million of $25-par series G perpetual preferred shares continued to be a favorite in the preferred stock market, a market source confirmed.

The deal was increased after last Monday’s price talk pegged the deal at $200 million. The deal comes with a 5.625% dividend that is payable quarterly beginning June 15.

The preferreds remained unchanged at $25.08 on Monday.

Bank of America active

Bank of America’s preferreds were active to start the week, traders reported.

On Wednesday the company announced that it would redeem all of its fixed-to-floating rate non-cumulative series M preferred stock and a portion of its fixed-to-floating rate non-cumulative series K preferred stock. The company is planning the M series redemption for May 15 and the series K redemption for April 30.

The series K preferreds rose 6 cents to close at $25.66. The series C preferreds ticked up 1 cent to close at $26.03.

Indices

The Wells Fargo Hybrid & Preferred Securities Financial index closed down 0.08%, trending lower after starting the day down 0.05%.

The iShares US Preferred Stock ETF fell 6 cents to close at $37.28.

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