B. Riley taps $25-par market; Regions Financial improves; AT&T preferreds better

By James McCandless

San Antonio, Sept. 1 – The preferred market ended Tuesday’s activity with gains across multiple sectors.

In primary activity, B. Riley Financial, Inc. priced a $32.5 million offering of $25-par series B cumulative perpetual preferred stock with a dividend of 7.375%.

At the top of the secondary space, Regions Financial Corp.’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferred stock improved.

Elsewhere in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock reached upward.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock saw pressure, going against the trend.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferreds were better as the afternoon ended.

Meanwhile, oil and gas name NuStar Energy LP’s 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferred units gained.

B. Riley’s deal

In Tuesday’s primary activity, B. Riley priced a $32.5 million offering of $25-par series B cumulative perpetual preferred stock with a dividend of 7.375%.

There is a $4,875,000 greenshoe.

B. Riley Securities, Inc., Incapital LLC, Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC are the bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event or within 120 days after a change of control at par.

Regions up

At the top of the secondary space, Regions Financial’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferred stock improved.

The preferreds (NYSE: RFPrC) were up 6 cents to close at $27.21 on volume of about 451,000 shares.

Elsewhere in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock reached upward.

The preferreds (NYSE: COFPrJ) shot up 14 cents to close at $24.41 with about 318,000 shares trading.

On Monday, the preferreds improved by 6 cents.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock saw negative pressure, going against the day’s trend.

The preferreds (NYSE: WFCPrZ) declined by 4 cents to close at $24.75 on volume of about 279,000 shares.

AT&T better

Telecom services provider AT&T’s 4.75% series C perpetual preferreds were better as the afternoon ended.

The preferreds (NYSE: TPrC) added 5 cents to close at $25.42 with about 263,000 shares trading.

On Monday, the preferreds gave up 5 cents.

NuStar gains

Meanwhile, oil and gas name NuStar’s 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferred units gained ground.

The preferreds (NYSE: NSPrB) garnered 4 cents to close at $17.10 with about 179,000 shares trading.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day up by 0.23%, giving back some of the 0.31% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was down 2 cents to $36.52.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.