Preferreds from IberiaBank, Huntington in focus; Hercules drops; Freddie, Fannie improve

By Christine Van Dusen

Atlanta, May 4 – Investors were keeping an eye on recent new issues from IberiaBank Corp. and Huntington Bancshares Inc. on Wednesday in the preferred stock market.

IberiaBank on Tuesday priced $50 million 6.6% series C fixed-to-floating rate noncumulative perpetual preferred stock via Keefe, Bruyette & Woods and BofA Merrill Lynch, following talk near 6.625%.

The preferreds will be issued as depositary shares representing a 1/400th interest.

Dividends will be fixed and payable quarterly to but excluding May 1, 2026. Beginning on that date, the dividend will float at Libor plus 492 basis points.

The preferreds become redeemable on May 1, 2026 at par plus accrued dividends. The company can also redeem the issue in whole within 90 days of a regulatory capital treatment event.

The new issue of preferreds from Huntington Bancshares – an additional $200 million of its 6.25% series D noncumulative perpetual preferred stock (Nasdaq: HBANO) – traded Wednesday morning at $25.98, then closed at $26.01, up 6 cents.

In other news, Hercules Capital Inc. saw its $65.4 million add-on to its 6.25% $25-par notes due 2024 (NYSE: HTGX) trade Wednesday at $24.98, down a penny. At the end of the session the notes were seen at $24.97.

Separately, Freddie Mac and Fannie Mae preferreds ticked higher on Wednesday after weakening the day before on news that Freddie suffered a loss for the first quarter.

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