Cherry Hill, Fortress Biotech plan more preferreds; Allstate’s recent issue trades up

By James McCandless

San Antonio, April 5 – The preferred market was active again on Thursday but prices remained mixed.

In primary activity, there were two registrations for at-the-market sales.

Cherry Hill Mortgage Investment Corp. registered an at-the-market $35 million offering of its 8.2% series A preferreds.

Another at-the-market offering came from Fortress Biotech, Inc. with $26 million of its 9.375% preferreds.

Allstate Corp. led the secondary market with its recent $500 million issue of $25-par perpetual preferred series G shares.

Cherry Hill offers more series A

At the end of the day, Cherry Hill registered an at-the-market offering to sell up to $35 million more of its 8.2% series A cumulative redeemable preferred stock.

B. Riley FBR, Inc. and JMP Securities LLC are the sales agents.

The preferreds were originally priced at $55 million in August 2017.

The series A preferreds traded up 9 cents to close at $25.15.

Fortress also files

Also at end of market Thursday, Fortress Biotech registered to sell up to $26 million more of its 9.375% series A cumulative redeemable preferred stock.

B. Riley FBR, Inc., National Securities Corp., LifeSci Capital LLC, Maxim Group LLC and Noble Capital Markets, Inc. are the sales agents.

The original offering for the preferreds in November was for $25 million with a 9.375% yield.

The preferreds most recently traded at $22.89.

Allstate rises in secondary trading

Allstate’s recent upsized $500 million of $25-par perpetual preferred series G shares, priced last Tuesday, continued to lead the preferred stock market according to traders.

The shares come with a 5.625% dividend that begin paying out on June 15, 2018.

The preferreds continued to climb, rising 3 cents to close at $25.18.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended down 0.02% after sliding as far as 0.06% in early trading.

The iShares US Preferred Stock ETF jumped up 9 cents to close at $37.24.

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