N.T. Butterfield, BankUnited, Athene price; United Community at par; Brighthouse down

By James McCandless

San Antonio, June 4 – As more preferred new issuance came to market, the secondary space saw weakness on Thursday.

The primary market saw Bank of N.T. Butterfield & Son Ltd. price a $100 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes with an initial coupon of 5.25%.

Also, BankUnited, Inc. priced a $300 million offering of $1,000-par subordinated notes due June 11, 2030.

Athene Holding Ltd. priced an offering of $25-par series C fixed-rate reset perpetual non-cumulative preference shares with a dividend of 6.375% at par while its 6.35% series A fixed-to-floating rate perpetual non-cumulative preferred stock declined.

In the secondary, United Community Banks, Inc.’s new $100 million 6.875% series I non-cumulative preferred stock finished its first day at par.

Elsewhere in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferreds improved.

Sector peer Atlantic Union Bankshares Corp.’s new 6.875% series A perpetual non-cumulative preferred stock slipped.

Meanwhile, insurance provider Brighthouse Financial, Inc.’s 6.75% series B non-cumulative perpetual preferred stock was under water.

Butterfield prices

The primary market saw Bank of N.T. Butterfield priced a $100 million offering of $1,000-par 10-year fixed-to-floating rate subordinated notes (A3/BBB//Kroll: A) with an initial coupon of 5.25%.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed until June 15, 2025, then converts to a rate of the three-month SOFR plus 506 basis points.

The notes are redeemable on or after June 15, 2025 at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the bank is required to register as an investment company at par.

BankUnited’s deal

Also, BankUnited priced a $300 million offering of $1,000-par subordinated notes due June 11, 2030.

The deal was talked at $300 million and came in under talk of a yield in the 5.25% area.

BofA Securities, Inc., J.P. Morgan Securities LLC and Piper Sandler & Co. are the bookrunners.

The notes are redeemable on or after March 11, 2030. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event, or if the company is required to register as an investment company.

Athene prices

Athene priced an offering of $25-par series C fixed-rate reset perpetual non-cumulative preference shares (/BBB-/) with a dividend of 6.375% at par on Thursday.

Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the bookrunners.

The dividend resets on Sept. 30, 2025 and every five years thereafter at the Treasury rate plus a spread.

The preferreds are redeemable on June 30 of each year at par.

The company’s established 6.35% series A fixed-to-floating rate perpetual non-cumulative preferred stock declined as the afternoon ended.

The preferreds (NYSE: ATHPrA) dived 45 cents to close at $25.20 with about 325,000 shares trading.

United at par

In the secondary space, United Community’s new $100 million 6.875% series I non-cumulative preferred stock finished its first trading day at par.

The preferreds, trading under the temporary symbol “UCBKL,” were spotted closing at $25.00 on volume of about 1.1 million shares.

The deal priced on Wednesday.

Elsewhere in the finance space, Truist’s 5.25% series O non-cumulative perpetual preferreds improved by the end of the session.

The preferreds (NYSE: TFCPrO) gained 12 cents to close at $25.52 with about 1.1 million shares trading.

On Wednesday, the preferreds shed 5 cents.

Sector peer Atlantic Union’s new 6.875% series A perpetual non-cumulative preferred stock slipped to a lower position.

The preferreds, trading under the temporary symbol “AUBKL,” shaved off 1 cent to close at $25.14 on volume of about 573,000 shares.

Brighthouse off

Meanwhile, insurance provider Brighthouse’s 6.75% series B non-cumulative perpetual preferred stock was under water.

The preferreds (Nasdaq: BHFAO) were pushed down 15 cents to $25.20 on volume of about 224,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index closed the day down by 0.27%, extending a 0.14% drop from early Thursday trading.

The iShares US Preferred Stock ETF was up 2 cents to $35.30.

© 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.