Bank of New York Mellon prices $1 billion; Tsakos upsized; Ally up ahead of tender news

By Stephanie N. Rotondo

Phoenix, April 23 – The preferred stock market rebounded in Thursday trading, effectively erasing Wednesday’s losses.

The Wells Fargo Hybrid and Preferred Securities index closed 6 basis points better, though it was up 10 bps at mid-morning. The index ended Wednesday’s session off 5 bps.

Another new deal hit the tape early in the day, as the Bank of New York Mellon Corp. announced a sale of $1,000-par series E fixed-to-floating rate noncumulative perpetual preferreds.

The company sold $1 billion of the preferreds at par to yield 4.95%.

At the close, the new issue was pegged at 100.125 bid, 100.375 offered.

Ahead of pricing, a trader opined that the deal could come in a 5% to 5.125% context.

Goldman Sachs & Co., Citigroup Global Markets Inc., UBS Securities LLC and BNY Mellon Capital Markets LLC are running the books.

The new issue came on the heels of the company’s earnings announcement on Wednesday in which the New York-based bank reported a 16% increase in profit.

Meanwhile, Tsakos Energy Navigation Ltd. priced an $85 million offering of 8.75% series D cumulative redeemable preferred stock late Wednesday.

Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners.

And Ally Financial Inc. announced a tender offer for its 8.5% series A fixed-to-floating rate perpetual preferreds after the market closed Thursday.

Prior to the news, Ally’s preferreds were trending higher.

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