Triton, Sachem tap $25-par market; Capital One active, unchanged; Northern Trust declines

By James McCandless

San Antonio, Oct. 31 – The preferred market ended on weaker footing on Thursday as the most actively traded names saw mixed activity.

The primary market featured Triton International Ltd. selling a $175 million offering of $25-par series C cumulative redeemable perpetual preference shares at par with a dividend of 7.375%.

Also, Sachem Capital Corp. priced a $30 million offering of $25-par notes due Dec. 30, 2024 at par with a coupon of 6.875%.

In the secondary, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was active but ended flat.

Elsewhere in finance, Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds gained.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were seen declining.

Asset manager Northern Trust Corp.’s new 4.7% series E non-cumulative perpetual preferred stock traded lower.

Meanwhile, REIT AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferreds were lifted.

Triton prices

The primary market featured Triton selling a $175 million offering of $25-par series C cumulative redeemable perpetual preference shares (B+) at par with a dividend of 7.375%.

There is no greenshoe.

The deal was announced Thursday morning.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change-of-control triggering event.

Sachem’s deal

Also, Sachem priced a $30 million offering of $25-par notes (Egan-Jones: BBB+) due Dec. 30, 2024 at par with a coupon of 6.875%.

There is a $4.5 million greenshoe.

The deal was announced on Wednesday.

Ladenburg Thalmann & Co. Inc. and Janney Montgomery Scott LLC are the joint bookrunners.

The lead manager is National Securities Corp.

The notes are redeemable on or after Nov. 7, 2021 at par.

Capital One flat

Leading trading volume in the secondary, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock was active but ended unchanged.

The preferreds (NYSE: COFPrI) finished level, closing at $25.13 on volume of about 986,000 shares.

Elsewhere in the finance space, Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds gained at the end of the day.

The preferreds (NYSE: WFCPrQ) improved by 6 cents to close at $26.93 with about 894,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were seen declining by the session’s end.

The preferreds (NYSE: ALLYPrA) dropped 4 cents to close at $26.41 on volume of about 791,000 shares.

Northern Trust lower

Asset manager Northern Trust’s new 4.7% series E non-cumulative perpetual preferred stock traded lower.

The preferreds, trading under the temporary symbol “NTREL,” fell 6 cents to close at $25.06 with about 806,000 shares trading.

On Wednesday, their first trading day, the preferreds landed above par.

AGNC rises

Meanwhile, real estate investment trust AGNC’s 6.5% series E fixed-to-floating rate cumulative redeemable preferreds were lifted by the end of the day.

The preferreds (Nasdaq: AGNCO) saw a 13 cent boost to close at $25.73 on volume of about 668,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index closed down by 0.21%, adding onto the 0.15% decrease from early Thursday trading.

The iShares US Preferred Stock ETF was down 3 cents to $37.53.

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