Huntington Bancshares taps market; more deals expected; new preferreds stay active

By Stephanie N. Rotondo

Seattle, March 14 – The preferred stock market’s recent stream of new deals continued on Monday with a $350 million sale of 6.25% series D noncumulative perpetual preferreds from Huntington Bancshares Inc.

The preferreds priced on top of price talk.

A source said the issue was trading around $24.65 bid, $24.75 offered in the gray market for most of the day.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the DRD-eligible deal.

Meanwhile, recently priced issues continued to be in focus, according to a trader.

“Everything that has recently been issued is holding up pretty well,” he said.

KKR & Co. LP’s $300 million of 6.75% series A noncumulative perpetual preferred units, for instance, were trading “in fairly decent size” at $24.85, a trader said at mid-morning.

“Must be the manager,” he added.

At the close, a source said the issue dominated overall trading, with over 1.1 million shares being exchanged.

He deemed the issue up 8 cents at $24.88.

That issue came Thursday, upsized from $150 million and in line with the 6.75% price talk.

STAG Industrial Inc.’s $75 million of 6.875% series C cumulative redeemable preferreds – another deal priced Thursday – were pegged at $24.95 bid.

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