Ameris taps $1,000-par market; Wells Fargo preferreds decline; Rexford Industrial weaker

By James McCandless

San Antonio, Sept. 23 – The preferred market was sharply lower by the end of the Wednesday session.

The primary space saw Ameris Bancorp price a $110 million offering of $1,000-par fixed-to-floating rate subordinated notes due Oct. 1, 2030 at par with an initial coupon of 3.875%.

Leading the secondary trading, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock declined.

Also in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were pushed down.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds were following the day’s trend.

Elsewhere, REIT Rexford Industrial Realty, Inc.’s 5.625% series C cumulative redeemable preferred stock weakened.

AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock slipped lower.

Ameris prices

The primary space saw Ameris price a $110 million offering of $1,000-par fixed-to-floating rate subordinated notes due Oct. 1, 2030 (Kroll: BBB) at par with an initial coupon of 3.875%.

Keefe, Bruyette & Woods, Inc. and Piper Sandler & Co. are the bookrunners.

The coupon is fixed until Oct. 1, 2025, then converts to a floating rate of the three-month SOFR plus 375.3 basis points.

The notes are redeemable on or after Oct. 1, 2025 at par. Prior to that, the notes are redeemable after a tax event, tier 2 capital event, or if the company is required to register as an investment company at par.

Wells Fargo declines

Leading the middle of the week’s secondary trading, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock declined.

The preferreds (NYSE: WFCPrZ) were down 15 cents to close at $24.75 on volume of about 355,000 shares.

Also in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were pushed down.

The preferreds (NYSE: ALLYPrA) gave up 14 cents to close at $24.96 with about 291,000 shares trading.

On Tuesday, the preferreds shed 2 cents.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds were following the day’s trend.

The preferreds (NYSE: SYFPrA) dropped 28 cents to close at $24.07 on volume of about 238,000 shares.

Rexford weaker

Elsewhere, real estate investment trust Rexford Industrial’s 5.625% series C cumulative redeemable preferred stock weakened as the afternoon ended.

The preferreds (NYSE: REXRPrC) dived 21 cents to close at $26.83 with about 301,000 shares trading.

AGNC’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was another name to slip lower.

The preferreds (Nasdaq: AGNCP) shaved off 26 cents to close at $22.60 on volume of about 224,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the session lower by 1.16%, far lower than the 0.06% loss from early Wednesday trading.

The iShares US Preferred Stock ETF was down 45 cents to $35.78.

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