Priority Income Fund taps market; Citigroup preferreds improve; Allstate moves lower

By James McCandless

San Antonio, Feb. 20 – The preferred space ended the Wednesday session mixed as the primary market saw a new deal.

Priority Income Fund, Inc. priced a $35 million offering of $25-par series C term preferred stock due 2024 at par with a dividend of 6.625%.

In secondary trading, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities traded up.

Elsewhere in finance, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock was active but level.

Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds closed lower.

Meanwhile, insurer Allstate Corp.’s 5.625% series G fixed-rate non-cumulative perpetual preferred stock also closed worse off.

Shipping name Tsakos Energy Navigation Ltd.’s 9.25% series E fixed-to-floating rate cumulative redeemable perpetual preferreds continued their upward swing.

Priority Income prices

Priority Income Fund priced a $35 million offering of $25-par series C term preferred stock (Egan-Jones: AA) due 2024 at par with a dividend of 6.625%.

There is a $5.25 million greenshoe.

The deal was announced on Tuesday.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, B. Riley FBR, Inc. and Incapital LLC are the joint bookrunners.

Priority Income Fund said it plans to use the proceeds to acquire investments in accordance with its investment objectives and strategies and for general corporate purposes.

Citigroup gains

Meanwhile, leading in the secondary, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities traded up.

The preferreds (NYSE: CPrN) ended up 2 cents to close at $26.52 on volume of about 256,000 shares.

Elsewhere in the finance space, JPMorgan’s 6% series EE non-cumulative preferred stock was active but closed the session flat.

The preferreds (NYSE: JPMPrD) were level to close at $26.00 with about 239,000 shares trading.

On Tuesday, the preferreds lost 3 cents.

Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds were also negative.

The preferreds (NYSE: WFCPrQ) dropped 2 cents to close at $25.57 on volume of about 194,000 shares.

Allstate off

In the insurance space, Allstate’s 5.625% series G fixed-rate non-cumulative perpetual preferred stock closed Wednesday worse off.

The preferreds (NYSE: ALLPrG) were down 3 cents to close at $24.97 with about 222,000 shares trading.

Tsakos better

Shipping name Tsakos’ 9.25% series E fixed-to-floating rate cumulative redeemable perpetual preferreds maintained an upward trajectory.

The preferreds (NYSE: TNPPrE) added 26 cents to close at $21.13 on volume of about 152,000 shares.

On Tuesday, the preferreds shot up $1.45.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished Tuesday up 0.03%, reversing a 0.02% drop in early trading.

The iShares US Preferred Stock ETF was up 1 cent to $36.19.

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