Morning Commentary: AT&T, Healthcare Trust on tap; Capital One weaker; Allstate down

By James McCandless

San Antonio, Dec. 5 – The preferred market saw a slight decline at the open with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.01%.

The primary pipeline stayed busy as Healthcare Trust, Inc. said it plans to price a $35 million offering of $25-par series A cumulative redeemable perpetual preferred stock.

There is a $5.25 million greenshoe.

B. Riley FBR, Inc., D.A. Davidson & Co., Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC are the joint bookrunners.

Telecom giant AT&T Inc. announced plans to price an offering of $25-par series A perpetual preferred stock.

Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., RBC Capital Markets LLC, J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners.

The preferreds are redeemable after five years. Prior to that, the preferreds are redeemable within 90 days after a ratings event at $25.50.

In the secondary space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock opened on weaker footing.

The preferreds (NYSE: COFPrI) were down 3 cents to $24.71 on volume of about 215,000 shares.

Elsewhere in the finance space, AXA Equitable Holdings, Inc.’s 5.25% series A fixed-rate non-cumulative perpetual preferred stock were also trailing.

The preferreds (NYSE: EQHPrA) were declining by 3 cents to $25.00 with about 154,000 shares trading.

Sector peer Bank of America Corp.’s 5% series LL non-cumulative preferreds were sliding.

The preferreds (NYSE: BACPrN) were falling 10 cents to $25.40 on volume of about 46,000 shares.

Insurance provider Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock opened on the negative side.

The preferreds (NYSE: ALLPrH) edged 1 cent lower to $25.55 with about 126,000 shares trading.

Meanwhile, middle market investor Compass Diversified Holdings LLC’s 7.875% series C cumulative preferreds were also under water.

The preferreds (NYSE: CODIPrC) were dipping 7 cents to $25.00 on volume of about 56,000 shares.

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