Morning Commentary: Northern Trust bringing new noncumulative deal; Eagle Bancorp selling notes

By Stephanie N. Rotondo

Phoenix, July 29 – The primary preferred stock market was showing signs of life early Tuesday.

Northern Trust Corp. launched an offering of at least $150 million series C noncumulative perpetual preferred stock.

A market source placed price talk at 6%.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC are running the books.

“It doesn’t look like there is any selling group,” a trader said, seeing paper trading at $24.90 in the gray market. He remarked that the deal’s decent performance thus far was due to there being “no other deals and it’s a good name.”

“They don’t have any other debt, so institutional buyers are snatching it up,” he said.

Meanwhile, Eagle Bancorp Inc. said it was selling at least $55 million of subordinated notes due 2024.

Sandler O’Neill + Partners LP is leading that offering.

Given the small size of the deal, a trader had yet to see any markets for the new issue.

Overall, the market was trading flat early in the day, as the Wells Fargo Hybrid and Preferred Securities index was unchanged from Monday closing levels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.