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Valley National plans new noncumulative issue; Annaly frees, dominates trading; GSEs firm
By Stephanie N. Rotondo
Seattle, July 26 – Another new preferred stock issue hit the tape on Wednesday as Valley National Bancorp announced a $75 million offering of series B noncumulative preferreds.
Price talk is 5.5%, according to a market source.
At the end of the day, the issue was quoted at $24.90 bid, $25.95 offered in the gray market. That compared to earlier quotes in a $24.78 to $24.92 context.
The deal had not priced as of 6 p.m. ET.
Keefe Bruyette & Woods Inc. is running the books.
The Wayne, N.J.-based bank holding company plans to use the proceeds for general corporate purposes and investments in Valley National Bank.
Also on Wednesday, Valley announced it was acquiring U.S. AmeriBancorp Inc. for $816 million.
The merger and the preferred offering are not contingent upon each other.
From Tuesday’s business, Annaly Capital Management Inc.’s $700 million of 6.95% series F fixed-to-floating rate cumulative redeemable preferreds were seen ending the day at $24.85.
“A lot of shares traded,” a market source said, noting that the deal’s size had something to do with that.
The Wells Fargo Hybrid and Preferred Securities index was down 5 basis points. The U.S. iShares Preferred Stock index, however, was up 5 bps.
Meanwhile, Fannie Mae and Freddie Mac’s preferreds continued to be among the most actively traded securities, as the paper remained on an upward course.
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