Valley National sells $1,000-par notes; Brighthouse improves; Truist preferreds boosted

By James McCandless

San Antonio, May 29 – As the week came to a close, the preferred space largely carried over the positive trend from the previous days.

In primary activity, Valley National Bancorp priced a $115 million offering of $1,000-par fixed-to-floating rate subordinated notes due June 15, 2030 with an initial coupon of 5.25%.

Finishing on top of the secondary, insurance provider Brighthouse Financial Inc.’s 6.75% series B non-cumulative perpetual preferred stock improved.

Elsewhere, in the finance space, Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock was boosted.

Sector peer JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock finished the afternoon following the trend.

Stifel Financial Corp.’s 6.125% series C non-cumulative preferreds were relatively active though finished unchanged.

Meanwhile, telecom company AT&T, Inc.’s 4.75% series C perpetual preferred stock capped the week gaining ground.

Valley National prices

In Friday primary activity, Valley National priced a $115 million offering of $1,000-par fixed-to-floating rate subordinated notes (BBB-//Kroll: BBB/DBRS: BBBH) due June 15, 2030 with an initial coupon of 5.25%.

Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co. are the bookrunners.

The coupon is fixed until June 15, 2025, then converts to a floating rate of the three-month SOFR plus 514 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, tier 2 capital event, or if the company is required to register as an investment company at par.

Brighthouse better

Finishing the session on top of the secondary, insurance provider Brighthouse’s 6.75% series B non-cumulative perpetual preferred stock improved.

The preferreds (Nasdaq: BHFAO) were up 4 cents to close at $25.42 on volume of about 768,000 shares.

On Thursday, the preferreds slipped 2 cents.

Truist adds

Elsewhere, in the finance space, Truist’s 5.25% series O non-cumulative perpetual preferred stock was boosted by the end of the day.

The preferreds, trading under the temporary symbol “TFCLL,” picked up 20 cents to close at $25.40 with about 707,000 shares trading.

Sector peer JPMorgan’s 4.75% series GG non-cumulative preferred stock finished the afternoon following the positive trend.

The preferreds (NYSE: JPMPrJ) added 6 cents to close at $24.80 on volume of about 614,000 shares.

On Thursday, the preferreds dropped 12 cents.

Stifel’s 6.125% series C non-cumulative preferreds were relatively active during the session though finished unchanged.

The preferreds (NYSE: SFPrC) held level to close at $26.30 with about 271,000 shares trading.

On Thursday, the preferreds garnered 13 cents.

AT&T gains

Meanwhile, telecom company AT&T’s 4.75% series C perpetual preferred stock capped the week gaining ground.

The preferreds (NYSE: TPrC) were lifted 19 cents to close at $23.73 on volume of about 527,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished Friday higher by 0.36%, better than the 0.08% rise from early trading.

The iShares US Preferred Stock ETF was up 20 cents to $35.14.

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