Synovus taps market; Priority Income plans add-on; Annaly Capital preferreds positive

By James McCandless

San Antonio, June 24 – The preferred space opened up with a negative tone on Monday.

In the primary space, Synovus Financial Corp. priced an upsized $350 million offering of $25-par series E fixed-rate reset non-cumulative perpetual preferreds at par with an initial dividend of 5.875%.

Priority Income Fund, Inc. continued its program to sell up to $200 million via four series of preferred stock.

The secondary market saw Annaly Capital Management, Inc.’s new 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock improve slightly.

Meanwhile, in shipping, Triton International Ltd.’s new 8% series B cumulative redeemable perpetual preference shares were moving lower.

Retirement name Athene Holding Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares followed the negative trend.

In utilities, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds also slipped.

Elsewhere, in telecom, AT&T, Inc.’s 5.35% global notes due 2066 were also lower.

Synovus prices

Synovus priced an upsized $350 million offering of $25-par series E fixed-rate reset non-cumulative perpetual preferreds at par with an initial dividend of 5.875%.

There is no greenshoe.

The deal, announced Monday morning, was upsized from an initial $300 million and came in below talk for a dividend of 6% to 6.125%.

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

The preferreds are redeemable on or after July 1, 2024 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed until July 1, 2024, then converts to the five-year U.S. Treasury rate plus 412.7 basis points at that time and every five years thereafter.

Priority Income’s add-on

Priority Income Fund continued its program to price up to $200 million for four series of preferred stock.

The most recent offering is expected to price on July 1 and settle on July 3.

Incapital LLC is the purchasing agent and distributor. Ladenburg Thalmann & Co. Inc. is also an agent of the program.

The offering is part of the company’s continuous preferred stock issuance program that was announced on April 29.

Annaly improves

In the secondary market, asset manager Annaly Capital’s new 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock saw a slight improvement.

The preferreds, trading under the temporary symbol “ACAXP,” picked up 1 cent to close at $24.74 on volume of about 1.2 million shares.

On Friday, the preferreds closed under par.

Triton lower

Meanwhile, in the shipping space, Triton’s new 8% series B cumulative redeemable perpetual preference shares were moving lower.

The preferreds, trading under the temporary symbol “TTONF,” dropped 5 cents to close at $25.25 with about 488,000 shares trading.

Athene negative

Retirement name Athene’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares also followed the negative trend.

The preferreds (NYSE: ATHPrA) lost 1 cent to close at $26.09 on volume of about 283,000 shares.

Duke Energy slipped

In the utilities space, Duke Energy’s 5.75% series A cumulative redeemable perpetual preferreds also slid lower.

The preferreds (NYSE: DUKPrA) shed 5 cents to close at $26.39 with about 230,000 shares trading.

AT&T loses

Elsewhere, in telecom, AT&T’s 5.35% global notes due 2066 also spent the session under water.

The notes (NYSE: TBB) were down 8 cents to close at $25.90 on volume of about 160,000 notes.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.11% by the end of the day, giving back a 0.06% rise in early Monday trading.

The iShares US Preferred Stock ETF was off 3 cents to $36.93.

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