Primary market picks up as JPMorgan, Customers on tap; Synovus prices; Wells Fargo to list

By Stephanie N. Rotondo

Phoenix, July 22 - Preferred stocks were firm to kick off the week, though a trader said activity was lackluster as of midday.

The calendar continued to heat up, however, as more deals were added.

JPMorgan Chase & Co. was said to be talking an offering of $1,000-par series R fixed-to-floating rate noncumulative perpetual preferreds. Few details had emerged as of midday, and a trader said he had not seen any markets for the paper.

Price talk was 6.125% to 6.25%, according to the trader.

Synovus Financial Corp. meantime launched a $130 million offering of series C fixed-to-floating rate noncumulative perpetual preferreds. A trader saw a less 12-cent bid in the gray market.

Late in the session, Synovus sold $130 million of the preferreds with an initial coupon of 7 7/8%. If the securities are not called on Aug. 1, 2018 at par, then the coupon will convert to a floating rate on that date, payable quarterly.

J.P. Morgan Securities LLC was the bookrunner.

Synovus will use the proceeds from the sale to redeem preferreds held by the U.S. Treasury Department.

Also, Customers Bancorp Inc. announced a $25 million offering of $25-par senior notes due 2018.

A trader had not heard any talk on that deal, likely due to its small size.

In the secondary, Goldman Sachs & Co.'s 5.5% series J fixed-to-floating rate noncumulative perpetual preferreds (NYSE: GSPJ) were trading actively but weaker following Friday's rebalance of the Standard & Poor's Preferred Stock Index Fund.

The Goldman issue was added, along with 25 other securities.

The shares closed Monday's session at $24.91, down 11 cents.

Wells Fargo to list

Wells Fargo & Co.'s $1.5 billion issue of 5.85% fixed-to-floating rate series Q class A noncumulative preferreds are slated to list on the New York Stock Exchange on Tuesday, according to a trader.

At midday, the paper was trading at $25.23. As the day wore on, it inched up to $25.25.

The deal priced July 15. The expected ticker symbol is "WFCPQ."

Wells Fargo is a San Francisco-based bank.

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