Morning Commentary: Synovus preps offering; Annaly Capital better; Triton declines

By James McCandless

San Antonio, June 24 – Volume leaders in the preferred market started the day on a negative trend as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.06%.

Synovus Financial Corp. plans to price a $300 million offering of $25-par series E fixed-rate reset non-cumulative perpetual preferreds with an initial dividend of 6% to 6.125%.

BofA Securities, Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

Co-managers are Sandler O’Neill & Partners, LP and Synovus Securities, Inc.

The preferreds are redeemable after five years.

The dividend is fixed for five years, then converts to the five-year U.S. Treasury rate plus a spread at that time and at each reset period thereafter.

Leading trading, asset manager Annaly Capital Management, Inc.’s new 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock was pushing upward.

The preferreds, trading under the temporary symbol “ACAXP,” were up 7 cents to $24.80 on volume of about 482,000 shares.

Elsewhere, in the shipping space, Triton International Ltd.’s new 8% series B cumulative redeemable perpetual preference shares were headed lower.

The preferreds, trading under the temporary symbol “TTONF,” were falling 10 cents to $25.20 with about 88,000 shares trading.

Real estate investment trust UMH Properties, Inc.’s 6.75% series C cumulative redeemable preferred stock was also declining.

The preferreds (NYSE: UMCPrC) were down 17 cents to $25.05 on volume of about 76,000 shares.

Meanwhile, in utilities, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds were relatively active but flat at the open.

The preferreds (NYSE: DUKPrA) were level so far at $26.44 with about 36,000 shares trading.

Finance name Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities were also trailing early Monday.

The preferreds (NYSE: DXB) were down 10 cents to $25.16 on volume of about 29,000 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.