Morning Commentary: First Mid on tap; Morgan Stanley preferreds rise; Just Energy down

By James McCandless

San Antonio, Sept. 28 – The preferred market was seeing gains early Monday as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.40%.

The primary space saw First Mid Bancshares, Inc. announce plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Piper Sandler & Co., Janney Montgomery Scott LLC and Stephens Inc. are the bookrunners.

The coupon is fixed for six years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after six years at par. Prior to that, the notes are redeemable after a tax event, regulatory capital event or if the company is required to register as an investment company.

Leading off the week’s secondary activity, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferred stock and its 4.875% series L non-cumulative preferreds were both rising.

The series K preferreds (NYSE: MSPrK) were up 28 cents to $27.94 on volume of about 54,000 shares.

The series L preferreds (NYSE: MSPrL) were picking up 14 cents to $26.39 on volume of about 35,000 shares.

Elsewhere in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was also being lifted.

The preferreds (NYSE: WFCPrZ) were adding 14 cents to $25.01 with about 52,000 shares trading.

Sector peer Synchrony Financial’s 5.625% series A fixed-rate non-cumulative perpetual preferred stock was following the positive trend.

The preferreds (NYSE: SYFPrA) were jumping up 21 cents to $24.73 on volume of about 29,000 shares.

Utilities provider Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred shares were under pressure.

The preferreds (NYSE: JEPrA) were shaving off 14 cents to $3.22 with about 53,000 shares trading.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E and 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units were both falling.

The series E preferreds (NYSE: ETPPrE) were shedding 14 cents to $17.87 on volume of about 40,000 shares.

The series D preferreds (NYSE: ETPPrD) were losing 27 cents to $17.59 on volume of about 35,000 shares.

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