Morning Commentary: Public Storage tops par; Pacific Premier, Associated Banc-Corp eyed

By James McCandless

San Antonio, June 9 – The Tuesday session in the preferred market kicked off with a negative tone as the Wells Fargo Hybrid & Preferred Securities Financial index opened down by 0.30%.

The primary space was marked by Pacific Premier Bancorp, Inc., announcing plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable if a change in law prevents the company from deducting interest from the notes, upon a tier 2 capital event or if the company is required to register as an investment company.

Also, Associated Banc-Corp said it plans to price an offering of $25-par series F non-cumulative perpetual preferred stock.

BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are the bookrunners.

The preferreds are redeemable on or after Sept. 15, 2025 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

Leading secondary trading, real estate investment trust Public Storage’s new $500 million 4.625% series L cumulative preferred shares were spotted moving above par on its first trading day.

The preferreds, trading under the temporary symbol “PUBXL,” were seen at $25.06 on volume of about 1.2 million shares.

Sector peer AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was under water early.

The preferreds (Nasdaq: AGNCP) were losing 15 cents to $21.87 with about 59,000 shares trading.

Meanwhile, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities were also declining as the session started.

The preferreds (NYSE: CPrN) were diving 46 cents to $27.31 on volume of about 75,000 shares.

Elsewhere in the finance space, Atlantic Union Bankshares Corp.’s 6.875% series A perpetual non-cumulative preferreds were following the trend.

The preferreds, trading under the temporary symbol “AUBKL,” were shedding 2 cents to $24.96 with about 47,000 shares trading.

JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was also drifting to lower levels.

The preferreds (NYSE: JPMPrJ) were slipping 9 cents to $25.02 on volume of about 39,000 shares.

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