Morning Commentary: GDL Fund issues series C preferreds; Allstate announces preferred offering

By James McCandless

San Antonio, March 26 – The week began with a few new issues hitting the preferred stock market.

The Allstate Corp. plans to price $200 million of $25-par series G fixed-rate noncumulative perpetual preferred stock on Monday, a market source confirmed.

Yield talk was in the 5.625% to 5.75% range, the source said.

The preferreds will pay a quarterly dividend beginning on June 15, 2018.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank and Wells Fargo Securities LLC are joint bookrunners.

GDL Fund announced the results of its offering for $131.2 million of series C cumulative putable and callable preferred shares.

The offering was oversubscribed, receiving total subscriptions of around $153 million.

The preferreds pay a dividend of 4% for the first year.

Meanwhile, as common stock remains volatile and mixed to start the week, preferreds saw a slight uptick.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.03% on Monday after closing down 0.09% Friday.

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