Preferreds edge up amid Brexit vote; American Homes deal gets a symbol; BOK above par

By Stephanie N. Rotondo

Seattle, June 23 – The preferred stock market was trending upward on Thursday as the pending “Brexit” vote got underway in the United Kingdom.

“Everybody is guess that they are staying,” a trader said. As such, the broader markets were gaining ground.

For its part, the Wells Fargo Hybrid and Preferred Securities index was up 13 basis points.

Assuming the U.K. votes to stay in the European Union – final results are expected early Friday – it could spark another round of new issuance, the trader opined.

In trading, American Homes 4 Rent’s $200 million of 6.35% series E cumulative redeemable preferreds – an issue priced early Wednesday – were seen at $25.02 at mid-morning. However, the paper came in by the bell, closing at $24.90.

The closing level was down 9 cents on the day.

A trader said the issue had been assigned a temporary ticker, “AHMRP.”

The deal came upsized from $100 million and tighter than the 6.375% to 6.5% price talk.

Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Raymond James & Associates Inc. ran the books.

Meanwhile, BOK Financial Corp.’s $150 million of 5.375% $25-par subordinated notes due 2056 finished at $25.42, “which was around the high for the day,” a trader said. He added that the volume weighted average price was $25.0147.

That deal came Monday via Morgan Stanley, BofA Merrill Lynch, BOSC Inc. and Wells Fargo.

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