SunTrust Banks brings new deal, upsized and at low end of revised talk; TCF yet to free up

By Stephanie N. Rotondo

Phoenix, Dec. 13 - The preferred stock primary market continued to see new issues coming on Thursday, despite the December slowdown.

SunTrust Banks Inc. said on Wednesday that it would sell at least $150 million of series E noncumulative perpetual preferreds. Price talk was originally 6% to 6.125% but was revised to 5.875% to 6%, according to a trader.

"That kind of took the steam out of it a little bit," the trader said.

The deal priced shortly before the close.

Meanwhile, TCF Financial Corp.'s $100 million of 6.45% series B noncumulative perpetual preferreds - a deal that came Wednesday - had yet to free up, the trader said.

At the close, preferreds were generally weaker on the day, though not by a lot. Volume was on the subdued side as well.

SunTrust revises talk, prices

SunTrust Banks announced and then priced an offering of series E noncumulative perpetual preferreds on Thursday.

The Atlanta-based bank was originally expected to bring the issue at 6% to 6.125%, with at least $150 million being sold. Talk was then revised to 5.875% to 6%.

The price revision took a bit of wind out of the issue's sails, a trader said, seeing the preferreds at $24.70 in the midday gray market.

Shortly before the bell, the deal came, upsized at $450 million and at the tight end of revised talk.

After pricing, the previous weakness seemed to drift away, as a trader saw the issue close at $24.80 bid, $24.90 offered.

TCF performs well

TCF Financial's new 6.45% series B noncumulative perpetual preferreds were doing reasonably well in the secondary, though trading was not all that active.

"I haven't seen a lot of markets in that one," he said.

Early in the session, the issue was at $24.87.

The Wayzata, Minn.-based bank holding company priced the deal on Wednesday. As of midday on Thursday, it had yet to free from the syndicate.

Kimco, Summit list

As was expected, recent issues from Kimco Realty Corp. and Summit Hotel Properties Inc. listed on the New York Stock Exchange Thursday.

Kimco Realty's $175 million of 5.625% class K cumulative redeemable perpetual preferreds - which priced Nov. 28 - listed under the symbol "KIMPK." The issue was trading at $24.75 at midday, unchanged from Thursday's close, but down from opening levels of $25.05.

The issue closed at $24.75.

Summit's $67.5 million of 7.875% series B cumulative redeemable perpetual preferreds meantime listed under the ticker "INNPB." The preferreds were trading at $25.11, down 19 cents from the previous day and 4 cents weaker than the opening price of $25.15.

The preferreds ended at $25.05, down 25 cents.

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