Truist exercises $75 million 5.25% greenshoe; Brighthouse, First Horizon gain

By Cristal Cody

Tupelo, Miss., May 22 – Preferred stocks headed out on Friday mostly stronger following an active week in the primary market.

The Wells Fargo Hybrid and Preferred Securities index rose 0.42%.

The U.S. iShares Preferred Stock ETF improved 17 cents, or 0.5%, to $34.33 by the close.

The financial markets closed early Friday and will reopen on Tuesday following Monday’s Memorial Day holiday.

Truist Financial Corp. exercised a $75 million over-allotment option of its new 5.25% perpetual series O non-cumulative preferred stock on Friday.

The company priced an upsized $500 million offering of the shares on Tuesday.

The $25-par depositary shares representing the 5.25% preferred stock softened 3 cents, or 0.12%, to $24.95 on volume of about 576,000 shares.

Truist’s shares were admitted for over-the-counter trading under the symbol “TFCLL.”

In other new issue trading, Brighthouse Financial Inc.’s new preferreds priced at the start of the week improved over Friday’s session.

The company’s $25-par depositary shares representing series B 6.75% perpetual non-cumulative preferred stock rose 11 cents, or 0.44%, to $25.00 on trading volume of about 317,000 shares.

Brighthouse Financial sold an upsized $350 million of the 6.75% perpetual series B non-cumulative preferred stock on Monday.

The shares were admitted for trading over the counter under the symbol “BHFBL.”

First Horizon National Corp.’s $150 million of 6.5% $25-par perpetual non-cumulative preferred stock (Baa3/BBB) priced Wednesday climbed 15 cents, or 0.61%, to $24.72 on trading of about 386,000 shares over the afternoon.

The company sold 6 million shares of depositary shares that represent 1/4,000th ownership interest in a share of the series E non-cumulative perpetual preferred stock.

The shares were admitted for over-the-counter trading under the symbol “FHNCL.”

Meanwhile, Fortress Biotech, Inc. began marketing an add-on to its 9.375% $25-par series A perpetual preferred stock on Tuesday that remains in the deal pipeline.

The 9.375% preferreds (Nasdaq: FBIOP) headed out 6 cents, or 0.33%, softer Friday at $18.29 on about 24,000 shares traded.

Truist deal totals $575 million

Truist Financial sold a $75 million over-allotment option of the 5.25% perpetual series O non-cumulative preferred stock (Baa2/BBB-/BBB) on Friday, according to a market source.

The company sold $500 million of the preferreds on Tuesday in a deal upsized from $200 million.

Truist priced 20 million shares of $25-par depositary shares with each share representing 1/1000th of a share of the preferred stock in Tuesday’s offering.

The deal included a greenshoe of an additional 3 million depositary shares.

BB&T Capital Markets, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

The company plans to list the depositary shares on the New York Stock Exchange under the ticker symbol “TFC.PO.”

Charlotte, N.C.-based Truist Financial is a bank holding company formed following the merger in 2019 of Branch Banking & Trust Co. and SunTrust Banks, Inc.

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