Morning Commentary: Regions Financial, Atlantic Union preferreds on tap; Truist down

By James McCandless

San Antonio, June 2 – As Tuesday kicked off, the preferred market was largely on a negative track as the Wells Fargo Hybrid & Preferred Securities Financial index began down by 0.09%.

In early primary activity, Regions Financial Corp. announced plans to price an offering of $1,000-par series D non-cumulative perpetual preferred stock.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC are the bookrunners.

The dividend is fixed until Sept. 15, 2025, then resets to the five-year Treasury rate plus a spread. The rate will reset every five years after the initial reset date.

The preferreds are redeemable within three months prior to each reset date or following a regulatory capital treatment event at par.

Also, Atlantic Union Bankshares Corp. plans to price an offering of series A perpetual non-cumulative preferred stock.

Morgan Stanley, BofA Securities, Inc., Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, UBS Securities LLC and Piper Sandler & Co. are the bookrunners.

The preferreds have a liquidation preference of $25.00.

The preferreds are redeemable on or after Sept. 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

In secondary trading, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock was under water.

The preferreds (NYSE: TFCPrO) were down 6 cents to $25.55 on volume of about 138,000 shares.

Elsewhere in the finance space, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds were gaining ground.

The preferreds (NYSE: SYFPrA) were picking up 25 cents to $21.17 with about 38,000 shares trading.

Meanwhile, insurance provider Brighthouse Financial, Inc.’s 6.75% series B non-cumulative perpetual preferred stock opened the session trailing.

The preferreds (Nasdaq: BHFAO) were losing 3 cents to $25.40 on volume of about 107,000 shares.

Sector peer AXIS Capital Holdings Ltd.’s 5.5% series E non-cumulative preferred shares were being lifted.

The preferreds (NYSE: AXSPrE) were improving by 12 cents to $23.78 with about 31,000 shares trading.

In the energy space, Energy Transfer Operating, LP’s 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units were rising.

The preferreds (NYSE: ETPPrC) were adding 6 cents to $21.33 on volume of about 27,000 shares.

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