Fortress Transportation prices; AXA preferreds negative; American Equity loses

By James McCandless

San Antonio, Nov. 22 – The preferred market capped the week softer, with top traders weakening by the close.

In primary activity, Fortress Transportation & Infrastructure Investors LLC priced a $100 million offering of $25-par series B fixed-to-floating rate cumulative perpetual redeemable preferred shares at par with an initial dividend of 8%.

In secondary trading, AXA Equitable Holdings, Inc.’s new 5.25% series A fixed-rate non-cumulative perpetual preferred stock finished negative.

Elsewhere in finance, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferreds were active but unchanged.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock declined.

Annuities provider American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferreds followed the trend.

Meanwhile, REIT Global Net Lease, Inc.’s new 6.875% series B cumulative redeemable perpetual preferred stock dived.

Fortress prices

In Friday primary activity, Fortress Transportation priced a $100 million offering of $25-par series B fixed-to-floating rate cumulative perpetual redeemable preferred shares at par with an initial dividend of 8%.

There is a $15 million greenshoe.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

The dividend is fixed until Dec. 15, 2024, then converts to a floating rate of Libor plus 644.7 basis points.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a rating event at $25.50, after a change of control at $25.25, or after a tax redemption event at $25.25.

AXA negative

In secondary trading, AXA’s new 5.25% series A fixed-rate non-cumulative perpetual preferred stock finished the session negative.

The preferreds, trading under the temporary symbol “AXQEL,” were down 2 cents to close at $24.84 on volume of about 1.5 million shares.

On Thursday, the preferreds ended under par.

Elsewhere in the finance space, JPMorgan’s 4.75% series GG non-cumulative perpetual preferreds were active but unchanged.

The preferreds (NYSE: JPMPrJ) closed level at $25.17 with about 574,000 shares trading.

On Thursday, the preferreds lost 5 cents.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock saw a decline.

The preferreds (NYSE: SYFPrA) shaved off 8 cents to close at $25.30 on volume of about 357,000 shares.

On Thursday, the preferreds remained level.

American Equity down

Annuities provider American Equity’s new 5.95% series A fixed-rate reset non-cumulative preferreds followed Friday’s negative trend.

The preferreds, trading under the temporary symbol “AQYVL,” dipped 10 cents to close at $25.60 with about 1 million shares trading.

On Thursday, the preferreds moved down 10 cents.

Global Net dives

Meanwhile, real estate investment trust Global Net Lease’s new 6.875% series B cumulative redeemable perpetual preferred stock shifted lower.

The preferreds, trading under the temporary symbol “GBLNP,” dived 16 cents to close at $24.64 on volume of about 387,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index improved by 0.14%, hovering around the 0.15% rise from early Friday trading.

The iShares US Preferred Stock ETF was down 4 cents to $37.19.

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