KeyCorp prices; Bank of America, Energy Transfer unchanged; Regions Financial dips

By James McCandless

San Antonio, July 23 – The week in preferred trading began with two of its newest issues ending level despite high volume.

KeyCorp priced $425 million of $25-par series F fixed-rate perpetual non-cumulative preferred stock.

Bank of America Corp.’s new 5.875% series HH non-cumulative perpetual preferred stock was unchanged in active trading while the bank’s existing 6% series GG non-cumulative preferreds dropped again.

Energy Transfer Partners, LP’s new upsized $445 million 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units also ended level.

Meanwhile, Regions Financial Corp.’s 6.375% series A non-cumulative perpetual preferred stock edged lower.

KeyCorp taps market

Keycorp priced $425 million of $25-par series F fixed-rate perpetual non-cumulative preferred stock with a dividend of 5.65%.

The deal was announced Monday morning.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners (see related story elsewhere in this issue).

Bank of America mixed

Bank of America’s new 5.875% series HH non-cumulative perpetual preferred stock was level to start the week.

The deal, which priced late last Tuesday, was upsized from an initial size of $250 million and came at the low end of yield talk of 5.875% to 6%.

The preferreds, trading under the temporary symbol “BKAML,” were flat at $25.07 on volume of about 1.6 million shares.

On Friday, the preferreds lost 3 cents.

The company’s existing 6% series GG non-cumulative preferred stock declined.

The preferreds (NYSE: BACPrB) were down 31 cents to close at $26.03 with about 630,000 shares trading.

On Friday, the series GG preferreds were up 28 cents.

Energy Transfer level

Energy Transfer Partners’ new 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units ended level for the second day.

The deal was priced on July 16 at $400 million and later increased in size with a partial greenshoe exercise on Monday (see related story elsewhere in this issue).

The preferreds, trading under the temporary ticker “ETPZF,” were flat at $25.00 with about 1.2 million shares exchanged.

On Friday, the preferreds were also unmoved.

Regions Financial dips

Regions Financial’s 6.375% series A non-cumulative perpetual preferred stock declined in Monday trading.

The preferreds (NYSE: RFPrA) were down 2 cents to close at $25.38 with about 564,000 shares trading.

Indexes lower

The Wells Fargo Hybrid & Preferred Securities Financial index dropped 0.27% by the market close.

The iShares US Preferred Stock ETF was down 5 cents to $37.69.

© 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.