SunTrust Banks sells $500 million 5.625% $1,000-par preferreds; American Realty rebounds

By Stephanie N. Rotondo

Phoenix, Nov. 4 – Preferred stocks finished the day firm in Tuesday trading as SunTrust Banks Inc. brought a new $1,000-par deal.

The Wells Fargo Hybrid and Preferred Securities index closed up 15 basis points.

Atlanta-based SunTrust launched an offering of $1,000-par series F fixed-to-floating rate noncumulative preferred stock early in the day. Pricing came later, with $500 million of the preferreds being sold at par with an initial dividend of 5.625%.

A trader said price talk was 5.75% to 5.875%.

After pricing, a market source placed the issue at 100.25.

The dividend will be fixed until Dec. 15, 2019 and will be payable on a semiannual basis. After that date, the dividend will float at Libor plus 386 basis points and will be paid on the 15th day of March, June, September and December.

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

Meanwhile, American Realty Capital Properties Inc.’s 6.7% series F cumulative redeemable preferred stock (Nasdaq: ARCPP) recovered some of the ground lost since last Wednesday, though there was no fresh news driving the name higher.

The preferreds ended the day up 41 cents, or 1.96%, at $21.32.

The preferreds have been trending toward the down side since Wednesday when the company disclosed that its financial results dating back to 2013 could not be relied upon.

© 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.