Wintrust taps $25-par market; AXA preferreds drop; Athene improves

By James McCandless

San Antonio, May 6 – The preferred space finished the Wednesday session in decline after a seesaw day.

The primary market saw Wintrust Financial Corp. price a $250 million offering of $25-par series E fixed-rate reset non-cumulative perpetual preferred stock with an initial dividend of 6.875% at par.

Leading secondary trading, AXA Equitable Holdings, Inc.’s 5.25% series A non-cumulative preferred stock saw a drop.

Elsewhere in finance, Citizens Financial Group, Inc.’s 5% series E fixed-rate non-cumulative perpetual preferred stock also declined.

Meanwhile, retirement services name Athene Holdings Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares improved.

Insurance provider Aspen Insurance Holdings Ltd.’s 5.625% non-cumulative perpetual preference shares saw negativity.

Sector peer Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferreds saw a modest rise.

Wintrust prices

The primary space was active as Wintrust priced a $250 million offering of $25-par series E fixed-rate reset non-cumulative perpetual preferred stock (//BB/DBRS: BBB) with an initial dividend of 6.875% at par.

There is a $37.5 million greenshoe.

The deal was announced Wednesday morning.

RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The dividend is fixed until July 15, 2025, then resets every five years to the five-year Treasury rate plus 650.7 basis points.

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

AXA drops

Leading Wednesday’s secondary trading, AXA’s 5.25% series A non-cumulative preferred stock saw a drop.

The preferreds (NYSE: EQHPrA) were down 50 cents to close at $23.00 on volume of about 915,000 shares.

Elsewhere in the finance space, Citizens Financial’s 5% series E fixed-rate non-cumulative perpetual preferred stock also declined.

The preferreds (NYSE: CFGPrE) shaved off 8 cents to close at $24.06 with about 295,000 shares trading.

Athene up

Meanwhile, retirement services name Athene’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares improved at the end of the afternoon.

The preferreds (NYSE: ATHPrA) shot up 20 cents to close at $24.70 on volume of about 287,000 shares.

Aspen loses

Insurance provider Aspen Insurance’s 5.625% non-cumulative perpetual preference shares saw negativity, following the rest of the market.

The preferreds (NYSE: AHLPrE) trailed by 38 cents to close at $23.53 with about 238,000 shares trading.

Sector peer Allstate’s 5.1% series H fixed-rate non-cumulative perpetual preferreds saw a modest rise, bucking the trend.

The preferreds (NYSE: ALLPrH) picked up 5 cents to close at $25.63 on volume of about 224,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day down by 0.05%, slightly worse than the 0.02% dip in early Wednesday trading.

The iShares US Preferred Stock ETF was down 13 cents to $33.86.

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