Morning Commentary: SunTrust plans sale of $1,000-par preferreds; Gladstone not yet priced

By Stephanie N. Rotondo

Phoenix, Nov. 4 – Preferred stocks were only modestly higher in early Tuesday trading as SunTrust Banks Inc. added a $1,000-par deal to the new issue calendar.

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis point at mid-morning.

Atlanta-based SunTrust launched an offering of $1,000-par series F fixed-to-floating rate noncumulative perpetual preferreds early in the day. A trader said price talk was 5.75% to 5.875%.

“It still seems like they are trying to firm up price talk and the size,” he said, adding that he had yet to see any gray markets for the paper.

Goldman Sachs & Co., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. are running the books.

Meanwhile, Gladstone Investment Corp.’s proposed offering of series B cumulative term preferreds – a monthly paying issue announced Monday – was seen with a $24.55 gray market bid.

“I think it’s just a retail piece,” a trader said.

The deal has yet to price.

Janney Montgomery Scott LLC is the bookrunner.

In recent deals, Capital One Financial Corp.’s $500 million of 6.7% series D fixed-rate noncumulative perpetual preferreds – a deal from Oct. 28 – was “still hanging around” a $25.15 to $25.20 range, according to a trader.

© 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.