Morning Commentary: Associated Banc offering noncumulatives; KeyCorp frees; Monmouth near par

By Stephanie N. Rotondo

Seattle, Sept. 7 – The preferred stock new issue calendar added another deal on Wednesday with Associated Banc-Corp’s proposed $100 million offering of series D noncumulative preferreds.

That deal came on the heels of two new issues on Tuesday, a $525 million sale of 5% $1,000-par fixed-to-floating rate noncumulative preferreds from KeyCorp and $135 million of 6.125% series C cumulative redeemable preferreds from Monmouth Real Estate Investment Corp.

The Associated Banc issue was seen at $24.80 bid in the early gray market, though a trader noted that he had yet to see an offered side.

Price talk is 5.5%.

BofA Merrill Lynch and UBS Securities LLC are running the books.

The company plans to use the proceeds to redeem its outstanding 8% series B noncumulative preferreds (NYSE: ASBPB).

That paper was up 2 cents at mid-morning, trading at $25.51.

As for the KeyCorp deal, it had freed to trade as of mid-morning, according to a trader.

The trader pegged the issue at 100.125 bid, 100.5 offered.

Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and KeyBanc Capital Markets were the joint bookrunning managers.

The Monmouth new issue, however, had not yet freed to trade, the trader reported.

The preferreds were quoted at $24.98 bid, par offered.

RBC Capital Markets, BMO Capital Markets and JPMorgan led the deal.

A trader commented that the buzz was that another deal was slated for Thursday’s session.

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