Synchrony under par; Allstate preferreds weaker; Northern Trust negative

By James McCandless

San Antonio, Nov. 7 – The preferred space continued on Thursday the slide into negative territory that has marked the week.

The primary market saw CIT Group Inc. price a $200 million offering of $25-par series B non-cumulative perpetual preferred stock at par with a dividend of 5.625%.

Leading volume in the secondary, Synchrony Financial’s new $750 million 5.625% series A non-cumulative perpetual preferred stock finished under par.

Elsewhere in finance, JPMorgan Chase & Co.’s recent 4.75% series GG non-cumulative perpetual preferred stock declined.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds dived.

Insurance provider Allstate Corp.’s new 4.75% series I fixed-rate non-cumulative perpetual preferred stock ended weaker.

Meanwhile, asset manager Northern Trust Corp.’s recent 4.7% series E non-cumulative perpetual preferred stock followed the negative trend.

CIT’s deal

A steady primary space saw CIT price a $200 million offering of $25-par series B non-cumulative perpetual preferred stock (Ba3/B+/B) on Thursday at par with a dividend of 5.625%.

There is no greenshoe.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

Dividends will be payable quarterly on March 15, June 15, Sept. 15 and Dec. 15 of each year, beginning on March 15, 2020.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Synchrony under par

Leading activity in the secondary market, Synchrony’s new $750 million 5.625% series A non-cumulative perpetual preferred stock finished Thursday under par.

The preferreds, trading under the temporary symbol “SNFI,” were seen closing at $24.89 on volume of about 6 million shares.

The deal priced on Wednesday.

Elsewhere in the finance space, JPMorgan’s recent 4.75% series GG non-cumulative perpetual preferred stock also ended in decline.

The preferreds, trading under the temporary symbol “JPGGL,” declined by 10 cents to close at $24.85 with about 623,000 shares trading.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds also saw a dive throughout the session.

The preferreds (NYSE: COFPrI) dropped 26 cents to close at $24.73 on volume of about 546,000 shares.

Allstate weaker

Insurance provider Allstate’s new 4.75% series I fixed-rate non-cumulative perpetual preferred stock ended the afternoon on weaker footing.

The preferreds, trading under the temporary symbol “ASTLZ,” fell 17 cents to close at $24.73 with about 492,000 shares trading.

On Wednesday, the preferreds gained 1 cent.

Northern Trust off

Meanwhile, asset manager Northern Trust’s recent 4.7% series E non-cumulative perpetual preferred stock followed the market’s negative trend.

The preferreds, trading under the temporary symbol “NTREL,” moved down 15 cents to close at $25.10 on volume of about 478,000 shares.

On Wednesday, the preferreds picked up 3 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.55%, extending a 0.17% dip from early Thursday trading.

The iShares US Preferred Stock ETF was down 28 cents to $37.03.

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