New York Community, Gladstone sell preferreds; Hartford improves; JPMorgan edges higher

By James McCandless

San Antonio, Nov. 1 – The preferred primary space stayed active as the secondary saw moderate volume and mixed results.

New York Community Bancorp Inc. priced $300 million of 10-year split-rated fixed-to-floating rate subordinated notes (Baa2/BB/BBB-) at par with an initial fixed coupon of 5.9%.

Gladstone Capital Corp. priced an upsized $50 million offering of $25-par notes due Nov. 1, 2023 with a coupon of 6.125%.

In the secondary, Hartford Financial Services Group, Inc.’s new $300 million 6% series G non-cumulative perpetual preferred stock improved.

Meanwhile, MetLife, Inc.’s 5.625% series E non-cumulative preferreds also gained.

In the financial space, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock ended higher.

Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds and Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock declined.

New York Community prices

New York Community Bancorp sold $300 million of 10-year fixed-to-floating rate subordinated notes at par with an initial fixed coupon of 5.9% on Thursday.

Initial price talk on the notes was in the 5.875% to 6% yield area.

The notes are callable at par on Nov. 6, 2023. If not called, the notes will convert on Nov. 6, 2023 to a floating rate of Libor plus 278 basis points.

Goldman Sachs & Co. LLC, Sandler O’Neill + Partners, LP, Credit Suisse Securities (USA) LLC, Jefferies LLC and BofA Merrill Lynch were the bookrunners.

Gladstone’s offering

Gladstone priced an upsized $50 million offering of $25-par notes due Nov. 1, 2023 with a coupon of 6.125%.

The deal was announced Thursday morning, coming in above size talk of $40 million and matching yield talk of 6.125%.

There is a $7.5 million greenshoe.

Keefe, Bruyette & Woods, Inc. and Janney Montgomery Scott LLC are the joint bookrunners.

Hartford rises

At the top of the secondary space, Hartford’s new 300 million 6% series G non-cumulative perpetual preferred stock continued to rise past par.

The preferreds, trading under the temporary symbol “HIGJL,” were up 7 cents to close at $25.15 on volume of about 572,000 shares.

On Wednesday, the preferreds landed at $25.08 on their first day of trading.

The deal priced on Tuesday.

Elsewhere in the insurance space, MetLife’s 5.625% series E non-cumulative preferreds also ended higher after the session’s close.

The preferreds (NYSE: METPrE) were up 12 cents to close at $24.88 with about 127,000 shares trading.

JPMorgan better

In the financial sector, JPMorgan’s 5.75% series DD non-cumulative preferred stock edged up in Thursday trading.

The preferreds (NYSE: JPMPrD) were up 1 cent to close at $24.89 on volume of about 356,000 shares.

On Wednesday, the preferreds rose 6 cents.

Meanwhile, Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds trended negative.

The preferreds (NYSE: WFCPrQ) were down 6 cents to close at $25.54 with about 268,000 shares trading.

Bank of America’s 5.875% series HH non-cumulative preferred stock was also worse at the close.

The preferreds (NYSE: BACPrK) were down 3 cents to close at $24.89 on volume of about 218,000 shares.

On Wednesday, the preferreds added 8 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.08% at the close after starting Thursday down 0.01%

The iShares US Preferred Stock ETF was up 19 cents to $36.02.

© 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.