Fifth Third taps $25-par market; Capital One preferreds negative; Athene sinks

By James McCandless

San Antonio, Sept. 12 – Thursday saw more disparity in the preferred space with top traders moving in different directions.

Fifth Third Bancorp priced a $250 million offering of $25-par series K non-cumulative perpetual preferred stock at par with a dividend of 4.95%

In the day’s trading, Capital One Financial Corp.’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock went negative.

Elsewhere in finance, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds were gaining.

Sector peer Bank of America Corp.’s 6.2% series CC non-cumulative preferred stock also improved.

Meanwhile, retirement name Athene Holding Ltd.’s 6.25% series A fixed-to-floating rate perpetual non-cumulative preference shares sunk.

REIT Saul Centers, Inc.’s new 6% series E cumulative redeemable preferred stock declined.

Fifth Third prices

Fifth Third kept the primary market humming with a $250 million offering of $25-par series K non-cumulative perpetual preferred stock at par with a dividend of 4.95%.

There is no greenshoe.

The offering was announced Thursday morning.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and UBS Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after Sept. 30, 2024 at par. Prior to that, they are redeemable after a regulatory capital event.

Capital One negative

At the top of trading for a second day, Capital One’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock continued to trend negative.

The preferreds, trading under the temporary symbol “COFOL,” were down 3 cents to close at $24.67 on volume of about 1.2 million shares.

On Wednesday, the preferreds dropped 19 cents.

Elsewhere in the finance space, JPMorgan’s 6% series EE non-cumulative preferreds were seen gaining.

The preferreds (NYSE: JPMPrC) rose 8 cents to close at $28.36 with about 272,000 shares trading.

On Wednesday, the preferreds tacked on 5 cents.

Sector peer Bank of America’s 6.2% series CC non-cumulative preferred stock also improved by the end of the session.

The preferreds (NYSE: BACPrC) picked up 3 cents to close at $26.27 on volume of about 218,000 shares.

Athene sinks

Meanwhile, retirement name Athene’s 6.25% series A fixed-to-floating rate perpetual non-cumulative preference shares sunk.

The preferreds (NYSE: ATHPrA) declined by 18 cents to close at $27.05 with about 303,000 shares trading.

Saul Centers down

Real estate investment trust Saul Centers’ new 6% series E cumulative redeemable preferred stock declined.

The preferreds, trading under the temporary symbol “SAUXP,” moved down 6 cents to close at $24.97 on volume of about 222,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished Thursday down by 0.01%, hovering around the 0.02% loss from early Thursday trading.

The iShares US Preferred Stock ETF was up 6 cents to $37.21.

© 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.