AgriBank, Farmers price Rule144A offerings; F.N.B. ups deal; First Republic to list soon

By Stephanie N. Rotondo

Phoenix, Oct. 29 - Preferred stocks were moving back up on Tuesday after falling in the previous session.

As of midday, the Wells Fargo Hybrid and Preferred Securities index was up 8 basis points. By the closing bell, it was up 18 bps.

Another source saw several new deals hit the tape early in the day.

AgriBank FCB said it planned to sell at least $100 million of series A fixed-to-floating rate noncumulative perpetual preferreds via a Rule144A offering.

After the close, the $100-par preferreds priced, coming upsized at $250 million and priced at 6.875%.

Initial price talk was around 7%.

Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange also brought a Rule 144A offering on Tuesday. The company sold $335 million of 6.15% trust surplus notes due 2053. The notes are non-callable for 20 years.

Proceeds will be used to fund a tender offer for three series of trust surplus notes securities.

A market source said that "supposedly, it was on fire," though he had not seen any trading in the issue himself.

F.N.B. Corp. also announced a deal, an offering of at least $75 million of series E fixed-to-floating rate noncumulative perpetual preferreds.

Talk on the F.N.B. issue was around 7.375%, and actual pricing came at 7.25%. The deal was also upsized to $100 million.

Meanwhile, First Republic Bank's $200 million of 7% series E noncumulative perpetual preferreds - a deal that priced Oct. 21 - is slated to list on the New York Stock Exchange on Wednesday, according to a trader.

He pegged the preferreds at $24.92 bid, $25.02 offered at midday. At the close, a source said the issue had dropped a dime on "OK volume."

He placed the issue at $24.93, with a volume weighted average price of $24.97.

The ticker symbol will be "FRCPE."

Regions pops; Ally steady

Among listed issues, Regions Financial Corp.'s 6.375% series A noncumulative perpetual preferreds (NYSE: RFPA) were seen rising 20 cents on the day to close at $23.01.

Last week, the Birmingham, Ala.-based bank reported third-quarter net income of $285 million, which compared to income of $305 million the year before. Net interest income, however, was better at $824 million, up from $817 million.

Non-interest income fell to $495 million from $533 million.

Regions said its weaker earnings reflected a decline in mortgage demand. Mortgage loan production declined by 16% from the second quarter, with mortgage income falling to $52 million from $69 million.

Total revenue was $1.32 billion, which compared to $1.35 billion in the same quarter of 2012.

Also, Ally Financial Inc.'s 7.3% Public Income notes due 2031 (NYSE: GMA) ended the day flat at $25.28, according to a source.

The Detroit-based bank called the GMAC LLC-linked securities on Oct. 18 for Nov. 8. The call price is par plus accrued distributions.

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