Triton prices $25-par preferreds; Digirad announces potential offering; AIG improves

By James McCandless

San Antonio, March 12 – The preferred market ended Tuesday on a net positive as the primary space revved up.

Triton International Ltd. priced $75 million of $25-par series A cumulative redeemable perpetual preference shares with a dividend of 8.5%.

Digirad Corp. announced a potential offering of up to $15 million of $25-par nonconvertible preferred stock.

In the secondary, American International Group, Inc.’s new 5.85% series A non-cumulative perpetual preferred stock improved.

Real estate investment trust Digital Realty Trust, Inc.’s 5.85% cumulative redeemable preferreds were active but level.

Sector peer Pennsylvania Real Estate Investment Trust’s 6.875% series D cumulative redeemable perpetual preferreds saw a boost.

Meanwhile, in finance, KeyCorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock ended slightly better.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock followed the market’s upward trend.

Triton prices

Triton priced $75 million of $25-par series A cumulative redeemable perpetual preference shares with a dividend of 8.5%.

There is an $11.25 million greenshoe.

The deal was announced Tuesday morning.

Wells Fargo Securities, LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the bookrunners.

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

Digirad’s deal

Digirad announced a potential offering of up to $15 million of $25-par nonconvertible preferred stock.

Roth Capital Partners, LLC and Aegis Capital Corp. are the bookrunners.

The preferreds have a mandatory redemption after nine years. Prior to that, they are redeemable after a change-of-control event.

AIG improves

Elsewhere, AIG’s new 5.85% series A non-cumulative perpetual preferred stock improved on Tuesday.

The preferreds, trading under the temporary symbol “AIGGZ,” were up 4 cents to close at $25.14 on volume of about 1.2 million shares.

On Monday, the preferreds were level at $25.10.

Digital Realty flat

Despite relatively heavy trading, real estate investment trust Digital Realty’s 5.85% cumulative redeemable preferred stock finished flat.

The preferreds, trading under the temporary symbol “DLRPO,” closed the session level at $24.83 with about 626,000 shares trading.

On Monday, the preferreds picked up 11 cents.

Sector peer Pennsylvania REIT’s 6.875% series D cumulative redeemable perpetual preferreds saw a boost.

The preferreds (NYSE: PEIPrD) shot up 82 cents to close at $20.32 on volume of about 323,000 shares.

KeyCorp better

Meanwhile, in the finance space, KeyCorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock closed Tuesday slightly higher.

The preferreds (NYSE: KEYPrJ) were up 1 cent to close at $24.59 with about 488,000 shares trading.

JPMorgan’s 5.75% series DD non-cumulative preferred stock also followed the positive trend.

The preferreds (NYSE: JPMPrD) rose 20 cents to close at $26.18 on volume of about 357,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.13% by the end of the session, pushing higher from a 0.05% gain in early Tuesday trading.

The iShares US Preferred Stock ETF was up 8 cents to $36.45.

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