KeyCorp brings upsized $450 million deal tighter than initial talk; preferreds mixed

By Cristal Cody

Tupelo, Miss., April 22 – KeyCorp priced an upsized $450 million of perpetual non-cumulative redeemable preferred shares on Monday on top of guidance but tighter than initial talk.

Preferred stocks opened the day soft following the long Good Friday holiday weekend and were mixed over the session.

The Wells Fargo Hybrid and Preferred Securities index closed down 0.16% at 2,250.52. The index declined 0.04% early Monday after closing Thursday off 0.12%.

The U.S. iShares Preferred Stock ETF was down 1 cent over the morning but ended up 0.01% to $36.56. The ETF closed Thursday down 2 cents, or 0.05%, at $36.60.

KeyCorp’s stock was listed over the afternoon for over-the-counter trading under the symbol “KEYLL.”

In secondary trading, KeyCorp’s existing preferred stock declined about 14 cents to 16 cents over the session.

KeyCorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock (NYSE: KEYPrJ) fell 14 cents, or 0.56%, to $25.05 on trading volume of about 451,000 shares.

KeyCorp priced an upsized $450 million of 5.625% $25-par series G non-cumulative redeemable preferred shares (Baa3/BB+/BB) in Monday’s offering, according to a market source and an FWP filed with the Securities and Exchange Commission.

The preferreds priced on top of guidance and came tighter than initial talk in the 5.75% to 5.875% area. The deal was upsized from $200 million.

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