Midday Commentary: Texas Capital prices new issue; Argo to bring $25-par notes; Torchmark hits par

By Stephanie N. Rotondo

Phoenix, Sept. 18 - The new issue machine kept on cranking Tuesday, and "another big deal" is already slated for Wednesday, according to a preferred stock trader.

"They're really stuffing the goose," he said.

Texas Capital Bancshares Inc. priced a $100 million sale of 6.5% $25-par subordinated notes due 2042. The deal came at the tight end of talk.

A trader said he had seen no markets for the paper as of midday.

Deutsche Bank Securities Inc., U.S. Bancorp and Macquarie Capital Inc. are the joint bookrunning managers.

The issuer is the parent company of Dallas-based Texas Capital Bank.

Meanwhile, Argo Group US Inc. announced an offering of at least $100 million $25-par senior notes due 2042.

Price talk is 6.5% to 6.625%, according to a trader.

He saw an offer of $24.75 for the notes in the gray market, though he remarked it "could just be someone testing the waters."

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers.

Proceeds will be used to redeem outstanding trust preferreds and for general corporate purposes, which may include the repayment of debt.

Argo is a Hamilton, Bermuda-based underwriter of specialty insurance and reinsurance.

Torchmark Corp.'s new $125 million sale of 5.875% $25-par junior subordinated debentures due 2052 was meantime trading around par, a trader said. That deal priced Monday.

In other recent deals, Bank of New York Mellon Corp.'s recent 5.2% series C noncumulative perpetual preferreds were inching back up after falling off on Monday. A trader saw the preferreds offered at $24.80.

And PNC Financial Services Group Inc.'s 5.375% series Q noncumulative perpetual preferreds were seen at $24.70.

© 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.