Morning Commentary: Renasant $1,000-pars on tap; Ally Financial active, flat; Qwest declines

By James McCandless

San Antonio, Aug. 31 – The preferred space saw mild positivity early Monday as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.01%.

Kicking off the week’s primary market, Renasant Corp. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2035.

Piper Sandler & Co., Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. are the bookrunners.

After 10 years, the coupon converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after 10 years 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.

At the top of the morning’s secondary trading volume, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were active but unchanged so far.

The preferreds (NYSE: ALLYPrA) were holding level at $24.50 on volume of about 40,000 shares.

Elsewhere in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was seen moving on the positive side.

The preferreds (NYSE: COFPrJ) were tacking on 1 cent to $24.22 with about 24,000 shares trading.

Real estate investment trust Annaly Capital Management, Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds were also on the rise.

The preferreds (NYSE: NLYPrF) were picking up 13 cents to close at $23.43 on volume of about 34,000 shares.

Meanwhile, in communications, Qwest Corp.’s 6.5% notes due 2056 were on the decline as early trading started.

The notes (NYSE: CTBB) were shedding 11 cents to $25.25 with about 33,000 notes trading.

Sector peer AT&T, Inc.’s 4.75% series C perpetual preferred stock was picking up steam, following the overall trend.

The preferreds (NYSE: TPrC) were gaining 5 cents to $25.47 on volume of about 27,000 shares.

© 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.