Midday Commentary: Regions launches sale of noncumulative preferreds; BB&T deal frees up

By Stephanie N. Rotondo

Phoenix, Oct. 25 - Regions Financial Corp. said Thursday that it was planning an offering of series A noncumulative perpetual preferred stock, just days after the company said it was considering such issuance.

Price talk on the expected $250 million deal was originally around 6.625%, a trader said. However, pricing was then revised to 6.375% to 6.5%.

It's doing quite well," the trader said, noting that the higher dividend was attracting investors.

"All these little banks are doing better than expected," he remarked.

The trader added that the deal had no selling group, seeing paper at $24.92 bid, $24.95 in the gray market as of midday.

The company will use proceeds from the offering for general corporate purposes, including a possible redemption of its 8.875% trust preferreds (NYSE: RFPZ). That issue was trading at $25.52, down 7 cents.

Meanwhile, BB&T Corp.'s newly priced $450 million of 5.2% series F noncumulative perpetual preferred stock freed from the syndicate, according to a trader.

The deal priced Wednesday. As of midafternoon trading on Thursday, the issue was at $24.70 bid, $24.73 offered. That was softer than Wednesday's closing levels around $24.80.

And, UMH Properties Inc. brought a $31.25 million add-on to its 8.25% series A cumulative redeemable preferreds (NYSE: UMHPA). The shares were sold via a registered direct placement.

Paper was trading up 26 cents at midday to $26.49.

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