Webster Financial sells $150 million preferreds; Cowen, Peapack price; preferreds mixed

By Cristal Cody

Tupelo, Miss., Dec. 5 – Webster Financial Corp. priced $150 million of non-cumulative perpetual preferred shares on Tuesday.

Also in the primary market, Cowen Inc. sold $120 million of $25-par 10-year senior notes.

In addition, Peapack-Gladstone Financial Corp. priced $35 million of 10-year fixed-to-floating rate subordinated notes.

Webster Financial’s preferreds were freed to trade over the counter late afternoon under the temporary symbol “WEBFP.”

On Monday, Vornado Realty Trust priced a $300 million offering of $25-par 5.25% split-rated series M cumulative redeemable perpetual preferred stock.

The preferreds (Baa3/BBB-/BB+) freed to trade over the counter under the temporary symbol “VNNDP” and went out up 2 cents at $24.77. The shares traded up 6 cents to $24.82 at the start of the day.

Preferred stocks ended the session mixed.

The Wells Fargo Hybrid and Preferred Securities index rose 7 basis points.

The U.S. iShares Preferred Stock ETF, which was down 15 bps mid-morning, was unchanged on the day.

Webster taps market

Webster Financial sold $150 million of 5.25% $25-par series F non-cumulative perpetual preferred stock (Baa3/BB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

The deal consisted of 6 million depositary shares priced at $25.00 each. The depositary shares each represent 1/1,000th of an interest in a share of preferred stock.

BofA Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the bookrunners.

The company plans to list the new preferreds on the New York Stock Exchange under the ticker symbol “WBSPrF.”

Proceeds will be used to redeem all of the company’s series E preferreds at a redemption price equal to $25.40 per depository share.

Webster Financial is a Waterbury, Conn.-based bank holding company.

Cowen prices $120 million

Cowen sold $120 million of 7.35% $25-par senior notes due Dec. 15, 2027 on Tuesday, according to an FWP filed with the SEC.

Morgan Stanley & Co. LLC, UBS Securities LLC and Cowen and Co., LLC were the bookrunners.

There is an $18 million over-allotment option.

The securities will be listed on the Nasdaq exchange.

Proceeds will be used to redeem all of the company’s 8.25% senior notes, which mature on Oct. 15, 2021, and for general corporate purposes.

Cowen is a financial services firm based in New York.

Peapack-Gladstone prints

Peapack-Gladstone Financial priced a $35 million offering of 4.75% 10-year fixed-to-floating rate subordinated notes on Tuesday at par, according to an FWP filed with the SEC.

The rate resets from and including Dec. 15, 2022 to a rate equal to the then current three-month Libor, provided that if the Libor is less than zero, then the rate shall be zero plus 254 bps.

Sandler O’Neill + Partners, LP was the bookrunner.

Proceeds will be used for general corporate purposes.

Peapack-Gladstone Financial is the holding company for Peapack-Gladstone Bank, which is based in Bedminster, N.J.

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