Morning Commentary: SunTrust prices $500 million; primary market heats up; preferreds mixed

By Cristal Cody

Tupelo, Miss., Nov. 8 – SunTrust Banks, Inc. priced $500 million of depositary shares representing a 1/100th interest in a share of series H fixed-to-floating rate perpetual preferred stock.

The series H preferreds have a fixed-rate dividend of 5.125% to but excluding Dec. 15, 2027. Thereafter until the redemption date, if any, the rate will convert to a floating rate of Libor plus 278.6 basis points.

Other issuers also announced offerings in the works early Wednesday.

Energy Transfer Partners, LP plans to price series A fixed-to-floating rate cumulative redeemable perpetual preferred units.

Ashford Hospitality Trust intends to price series I cumulative preferred stock with a liquidation preference of $25.00 per share.

In addition, Summit Midstream Partners, LP announced it is offering series A fixed-to-floating rate cumulative redeemable perpetual preferred units. The units represent limited partner interests in the company.

Preferreds were mixed early in the day.

The Wells Fargo Hybrid and Preferred Securities index dropped 9 bps at the start of the session.

The U.S. iShares Preferred Stock ETF climbed 12 bps.

AT&T Inc.’s 5.35% $25-par global notes due Nov. 1, 2066 slipped 3 cents, or 0.12%, to $25.30.

The Dallas-based telecommunications company sold $1.15 billion of the notes on Oct. 25.

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