Morning Commentary: Citizens, First Busey prep offerings; Brighthouse active, flat

By James McCandless

San Antonio, May 28 – The preferred market started the session with a positive tone as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.05%.

Early Thursday, in the primary space, Citizens Financial Group, Inc. announced plans to price an offering of $1,000-par series F fixed-rate reset non-cumulative perpetual preferred stock.

Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citizens Capital Markets, Inc. are the joint bookrunners.

On Oct. 6, 2025, the dividend will reset to the Treasury rate plus a spread.

The preferreds are redeemable on or after Oct. 6, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, First Busey Corp. plans to sell $1,000-par fixed-to-floating rate subordinated notes due 2030, according to a 424B5 filing with the Securities and Exchange Commission.

Piper Sandler & Co., Stephens Inc. and Janney Montgomery Scott LLC are the bookrunners.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

In the morning’s secondary trading, insurance provider Brighthouse Financial Inc.’s 6.75% series B non-cumulative perpetual preferred stock was active but so far unchanged.

The preferreds (Nasdaq: BHFAO) were holding level at $25.40 on volume of about 148,000 shares.

Elsewhere, in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock was improving.

The preferreds, trading under the temporary symbol “TFCLL,” were picking up 10 cents to $25.30 with about 68,000 shares.

Sector peer Stifel Financial Corp.’s 6.125% series C non-cumulative preferred stock was following the morning trend.

The preferreds (NYSE: SFPrC) were jumping up 21 cents to $26.38 on volume of about 47,000 shares.

Synovus Financial Corp.’s 5.875% series E fixed-rate reset non-cumulative perpetual preferreds kicked off the session on an upward trend.

The preferreds (NYSE: SNVPrE) were gaining 10 cents to $21.80 with about 39,000 shares trading.

Meanwhile, telecom service name AT&T, Inc.’s 4.75% series C perpetual preferred stock was rigid during morning activity.

The preferreds (NYSE: TPrC) were level at $23.40 on volume of about 38,000 shares.

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