Midday Commentary: SunTrust revises talk on planned new issue; TCF Financial yet to free up

By Stephanie N. Rotondo

Phoenix, Dec. 13 - The preferred stock primary market continued to see new issues coming on Thursday, despite the December slowdown.

SunTrust Banks Inc. said on Wednesday that it would sell at least $150 million of series E noncumulative perpetual preferreds. Price talk was originally 6% to 6.125% but was revised to 5.875% to 6%, according to a trader.

"That kind of took the steam out of it a little bit," the trader said, seeing the preferreds at $24.70 in the midday gray market.

Meanwhile, TCF Financial Corp.'s $100 million of 6.45% series B noncumulative perpetual preferreds - a deal that came Wednesday - had yet to free up, the trader said.

"I haven't seen a lot of markets in that one," he said. Early in the session, the issue was at $24.87, he said.

As was expected, recent issues from Kimco Realty Corp. and Summit Hotel Properties Inc. listed on the New York Stock Exchange Thursday.

Kimco Realty's $175 million of 5.625% class K cumulative redeemable perpetual preferreds - which priced Nov. 28 - listed under the symbol "KIMPK." The issue was trading at $24.75 at midday, unchanged from Thursday's close but down from opening levels of $25.05.

Summit's $67.5 million of 7.875% series B cumulative redeemable perpetual preferreds meantime listed under the ticker "INNPB." The preferreds were trading at $25.11, down 19 cents from the previous day and 4 cents weaker than the opening price of $25.15.

© 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.