Morning Commentary: Fortress prices preferreds; SunTrust, BBVA, BNP in pipeline; AT&T improves

By Cristal Cody

Tupelo, Miss., Nov. 7 – Primary action in the preferred stock market is picking up with one deal priced early Tuesday and other issuers announcing plans to tap the primary market.

Fortress Biotech, Inc. sold $25 million of 9.375% $25-par series A cumulative redeemable perpetual preferred shares (Egan-Jones: A-) early Tuesday.

SunTrust Banks, Inc. is offering depositary shares that represent a 1/100th interest in a share of the company’s series H fixed-to-floating rate perpetual preferred stock.

Banco Bilbao Vizcaya Argentaria, SA plans to price non-step-up non-cumulative contingent convertible perpetual preferred tier 1 securities.

Also, BNP Paribas SA is marketing $750 million of perpetual fixed-rate resettable additional tier 1 notes with initial price thoughts in the 5.625% area, a source said.

Preferreds were modestly weaker at the start of the session.

The Wells Fargo Hybrid and Preferred Securities index dipped nearly 1 basis point at the start of the day.

The U.S. iShares Preferred Stock ETF was down about 0.5 bp early Tuesday.

Looking at early trading, AT&T Inc.’s $1.15 billion of 5.35% $25-par global notes due Nov. 1, 2066 gained about 6 cents, or 0.20%, to $25.30. The notes closed on Monday up 3 cents, or 0.12%, to $25.25.

The Dallas-based telecommunications company sold the notes on Oct. 25. The issue was initially talked to price in the 5.375% to 5.5% area.

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