Preferreds strengthen; Wells Fargo Real Estate lists on NYSE; TravelCenters notes eyed

By Stephanie N. Rotondo

Phoenix, Dec. 8 – Preferred stocks closed higher Monday after gyrating a bit in early trading, vacillating between off a touch and essentially unchanged.

The Wells Fargo Hybrid and Preferred Securities index was down 1 basis point at mid-morning.

Wells Fargo Real Estate Investment Corp.’s $240 million issue of 6.375% series A cumulative perpetual preferreds experienced a quick turnaround, as the deal has already listed on the New York Stock Exchange.

The deal priced Thursday.

The ticker symbol is “WFEPA.”

The paper closed at $24.86, down from $24.90 at the open.

Wells Fargo Securities LLC was the bookrunner. BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC were the joint lead managers.

When declared, dividends will be paid on a quarterly basis. The preferreds become redeemable on or after Dec. 11, 2019 but can be redeemed earlier upon the occurrence of a tax or regulatory event, or if the company has to register as an investment company.

Meanwhile, TravelCenters of America LLC is said to be shopping around a $100 million offering of $25-par senior notes due 2029.

Price talk is 8% to 8.125%, according to a trader.

The trader said the issue was trading in a $24.60 to $24.70 context in the early gray market.

Citigroup Global Markets Inc., Morgan Stanley, RBC Capital Markets and UBS Securities are the joint bookrunners. MLV & Co. LLC is the lead manager.

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