AT&T improves after anti-trust victory; Synovus’ new preferred stock dominates trading

By James McCandless

San Antonio, June 13 – New issues dominated the preferred market as the secondary market saw a lighter day.

AT&T Inc.’s $25-par notes improved after a judge ruled on Tuesday that the company could go forward with its proposed merger with Time Warner Inc.

Synovus Financial Corp.’s new $200 million $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock shot up, leading volume.

RenaissanceRe Holdings Ltd.’s new $250 million series F preference shares continued to trade in the millions.

First Republic Bank’s recent series I noncumulative perpetual preferred stock was active but level.

Chicken Soup for the Soul Entertainment, Inc. started a $25 million public offering for series A cumulative redeemable perpetual preferred stock.

AT&T up

AT&T’s 5.35% global notes due 2066 were higher a day after a judge ruled that the company could move forward with its proposed merger with Time Warner. The government had challenged the merger, citing anti-trust laws, on the grounds that the new company would harm consumer choice.

The baby bonds (NYSE: TBB) were up 3 cents to $25.30.

Synovus jumps

Synovus’ new $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock dominated trading on its first day on the market with 2.72 million shares trading.

The deal, announced Tuesday morning, was upsized from $150 million and came in below yield talk of 6.375% and 6.5%.

The preferreds, trading under the temporary ticker “SYNVP,” traded up 60 cents to $25.60.

RenaissanceRe gains

RenaissanceRe’s new series F preference shares continued to generate trader interest with 1,189,000 shares exchanged.

The deal priced on Monday.

The securities, trading under the temporary ticker of “RNREF,” were up 3 cents to $24.98.

First Republic level

First Republic’s recent $300 million series I noncumulative perpetual preferred stock (NYSE: FRCPrI), with about 606,000 shares trading, were level at $24.75.

Chicken Soup launches

Chicken Soup for the Soul launched a $25 million public offering for $25-par series A cumulative redeemable perpetual preferred stock.

Ladenburg Thalmann & Co. Inc. is bookrunning manager for the offering, which carries a greenshoe of $3.75 million, or 150,000 shares (see related story elsewhere in this issue).

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