Supply rolling in again post-Sandy; City National, Everbank sell deals; Regions to list

By Stephanie N. Rotondo

Phoenix, Nov. 5 - The preferred stock market kicked off the week with a potentially active new issue calendar.

City National Corp. announced plans to issue series C noncumulative perpetual preferred stock on Monday. A trader said the size is expected to be $150 million, with pricing coming between 5.5% and 5.625%.

The deal later came upsized at $175 million at the tight end of talk.

The trader also noted that he had heard Everbank Financial Corp. was getting ready to price its previously announced offering of series A noncumulative perpetual preferreds.

The company had originally proposed the sale on Oct. 12.

The deal was expected to be at least $100 million, with pricing coming around 7%. The deal did eventually come at $150 million with a 6.75% yield.

"I'm still hearing it should be an active [primary] market through the end of the year," the trader added.

City, Everbank deals eyed

Prior to pricing, both City National and Everbank Financial's offerings were trading at $24.80 in the gray market, the trader said.

"They're doing well, but not crazy," he said at midday.

After the bell, a trader said City's new deal was in "very good shape."

"It's got very strong financial, very positive aspects to the bank," he said of the Los Angeles-based bank. "There's good retail and institutional demand for it."

Furthermore, he recommended people get involved.

He pegged the issue at $24.65 bid, $24.75 offered at the time.

The Everbank deal, however, was "weaker," according to the trader.

He said he saw the issue at $24.63 offered, no bids.

Both deals priced late in the day, with Everbank bringing a $150 million issue at 6.75%. City National meantime issued $175 million of its series C preferreds at 5.5%.

Regions' new issue to list

Regions Financial Corp.'s recent 6.375% series A noncumulative perpetual preferreds - a deal that priced Oct. 25 - is expected to list on the New York Stock Exchange on Tuesday.

The ticker symbol is "RFPA." A trader saw the issue at $24.85 near the close, unchanged from Friday.

Proceeds from the $500 million issue will be used to redeem $345 million of 8.875% trust preferreds on Dec. 3.

That issue (NYSE: RFPZ) was also unchanged from Friday, ending Monday's session at $25.46.

© 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.