Morning Commentary: Level One Bancorp prices; Public Storage preps offering; Truist up

By James McCandless

San Antonio, Aug. 11 – The preferred space kicked off Tuesday continuing an upward trend as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.02%.

In the primary market, Level One Bancorp, Inc. priced a $25 million offering of $25-par series B non-cumulative perpetual preferred stock (Kroll: BB+) with a dividend of 7.5% on Monday.

There is a $3.75 million greenshoe.

Piper Sandler & Co. is the bookrunner.

The preferreds are redeemable on or after Aug. 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, Public Storage announced plans to price an offering of $25-par series M cumulative preferred shares.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable after five years at par.

On top of early secondary volume, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was rising.

The preferreds (NYSE: TFCPrR) were up 9 cents to $25.49 on volume of about 178,000 shares.

Meanwhile, real estate investment trust New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferreds were also being pushed higher.

The preferreds (NYSE: NRZPrC) were picking up 8 cents to $20.00 with about 93,000 shares trading.

Agricultural products name CHS, Inc.’s 7.875% series 1 class B cumulative redeemable preferred stock opened with little movement.

The preferreds (Nasdaq: CHSCO) were shaving off 1 cent to $27.20 on volume of about 79,000 shares.

Insurance provider Argo Group International Holdings, Ltd.’s 7% resettable fixed-rate preference shares were also trailing.

The preferreds (NYSE: ARGOPrA) were declining by 4 cents to $25.05 with about 77,000 shares trading.

Elsewhere, telecom company AT&T, Inc.’s 4.75% series C perpetual preferred stock was also active.

The preferreds (NYSE: TPrC) were off 1 cent to $24.98 on volume of about 68,000 shares.

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