Morning Commentary: Preferred market bustles; Athene on tap; Medley trades higher

By James McCandless

San Antonio, June 4 – More new issuance was offered on the primary preferred market as the secondary was under pressure. The Wells Fargo Hybrid & Preferred Securities Financial index was down by 0.14%.

Pricing late Wednesday, Dime Community Bancshares, Inc. sold $40 million more of its $25-par series A fixed-rate non-cumulative perpetual preferred stock (//BB-) with a dividend of 5.5% at $19.87 per share.

There is a $7.5 million greenshoe.

There are $74.98 million of the preferreds outstanding, which priced on Jan. 29. The new preferreds will be fungible with the existing preferreds.

Raymond James & Associates, Inc. is the bookrunner.

The preferreds (Nasdaq: DCOMP) were off 25 cents to $20.60 on volume of about 89,000 shares.

Also, Athene Holding Ltd. announced plans to price $25-par series C fixed-rate reset perpetual non-cumulative preference shares.

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 plus a spread.

The company’s established 6.35% series A fixed-to-floating rate perpetual non-cumulative preferreds were falling.

The preferreds (NYSE: ATHPrA) were declining by 39 cents to $25.26 with about 56,000 shares trading.

BankUnited, Inc. said it plans to price an offering of $1,000-par subordinated notes due 2030.

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

The notes are redeemable three months prior to the redemption date. 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.

Bank of N.T. Butterfield & Son Ltd. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

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

The coupon is fixed for five years, then converts to a rate of the three-month SOFR plus a spread.

The notes are redeemable after five years. Prior to that, the notes are redeemable after a tax event.

Leading the early secondary market dip, Regions Financial Corp.’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferred stock was slightly lower.

The preferreds (NYSE: RFPrC) were shaving off 1 cent to $25.06 on volume of about 125,000 shares.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were improving, going against the trend.

The preferreds (NYSE: ALLYPrA) were rising 23 cents to $23.71 with about 72,000 shares trading.

Elsewhere, asset manager Medley LLC’s 7.25% senior notes due 2024 were shooting upward.

The notes (NYSE: MDLQ) were improving by $1.27 to $4.31 on volume of about 51,000 notes.

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