BB&T ups deal, sells at revised talk; PrivateBancorp, Urstadt to list; Texas Capital gains

By Stephanie N. Rotondo

Phoenix, Oct. 24 - Trading in the preferred stock market was busy on Wednesday, though the space was "down a touch," according to a market source.

"It opened a little firmer and then faded relatively quickly," he said.

Early on in the session, BB&T Corp. announced plans to sell at least $150 million of series F noncumulative perpetual preferreds. Price talk was originally around 5.375% but was later revised to 5.2%.

At midday, a trader remarked that the deal had already been increased to $450 million. After the bell, the new issue came at that size and in line with revised talk.

In the secondary, a trader said Texas Capital BancShares Inc. had released earnings, which he deemed generally "positive." However, he said he had expected the company's $100 million issue of 6.5% $25-par subordinated notes due 2042 to gain more ground than they had as of midday.

But by the end of the day, his expectations were met as the securities put on nearly 1% for the day.

BB&T brings 5.2% paper

Winston-Salem, N.C.-based BB&T priced $450 million of 5.2% series F noncumulative perpetual preferred stock on Wednesday.

Around midafternoon, a trader noted that there was no selling group.

The trader pegged the issue at $24.75 bid, $24.82 offered in the gray market at midday.

After pricing, the trader quoted the preferreds at $24.78 bid, $24.85 offered.

Another market source said the paper was "mostly trading around $24.80."

The source remarked that the issue had been seen as high as the $24.90 area. "Then they ratcheted the yield in and the price dropped 10 cents," he said.

Meanwhile, the company's 5.625% series E noncumulative perpetual preferreds (NYSE: BBTPE) finished the day flat at $25.65, with nearly 1.4 million shares changing hands. The issue initially traded off on word of the new issue, hitting a low of $25.55 before coming back to the closing level.

Joint bookrunners are Bank of America Merrill Lynch, BB&T Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes, including possible acquisitions, the repurchase of outstanding common stock, the repayment or refinancing of debt and to provide funding for the company's subsidiaries.

PrivateBank, Urstadt to list

PrivateBancorp Inc.'s $125 million of 7.125% $25-par subordinated debentures due 2042 were assigned a new trading symbol, a trader said, speculating that the securities could list as soon as Thursday.

The expected ticker symbol is "PVTD," he said. Paper was trading around $25.60.

The deal priced Oct. 11.

In other listings, Urstadt Biddle Properties Inc.'s $112.5 million of 7.125% series F cumulative redeemable perpetual preferred stock - a deal that came Oct. 17 - are expected to hit the New York Stock Exchange on Thursday.

The symbol is "UBPPF." A trader saw the issue at $25.65 bid.

Texas Capital firms

Texas Capital Bankshares reported its third-quarter results on Wednesday, which one trader said was "positive."

However, at midday, he was surprised that the preferreds had not gained much ground.

The 6.5% $25-par subordinated notes due 2042 (Nasdaq: TCBIL) were holding in at $25.70 around lunchtime.

After the bell, however, the issue had popped 18 cents, or 0.7%, to $25.88.

For the third quarter, the Dallas-based parent company of Texas Capital bank saw its net income increase 10% from the previous quarter and 50% from the third quarter of 2011.

Earnings were $32.57 million, or 80 cents per share.

Return on average equity was 17.27%, up from 14.93% the year before. Total deposits were up 22% year over year.

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