NiSource, Synovus price new issues; RenaissanceRe’s new issue leads declining market

By James McCandless

San Antonio, June 12 – The preferred market was active with two new issues coming to market.

NiSource, Inc. completed a $400 million sale for $1,000-par series A fixed-rate reset cumulative redeemable perpetual preferreds.

Synovus Financial Corp. priced $200 million $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock.

RenaissanceRe Holdings Ltd.’s new $250 million series F preference shares dominated volume in preferred trading.

MetLife, Inc.’s recent $805 million pricing of 5.625% series E non-cumulative preferred stock remained active in the secondary market.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock declined.

AT&T Corp.’s 5.35% global notes due 2066 were lower to end the session but strengthened in after-hours trading. The moves followed a judge’s ruling approving AT&T’s $85 billion takeover of Time Warner Inc. over the objection of federal regulators.

The 5.35% $25-par notes fell 13 cents, or 0.51%, to $25.27 during the regular session and were quoted up 68 cents, or 2.69%, to $25.95 in after-hours trading.

NiSource prices

NiSource completed a $400 million sale for $1,000-par series A fixed-rate reset cumulative redeemable perpetual preferred stock (Ba1/BBB-) with an initial dividend of 5.65%.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are the joint bookrunners.

NiSource held investor calls for the offering last Tuesday (see related story elsewhere in this issue).

Synovus prices

Synovus priced $200 million $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock at 6.3%.

Citigroup and BofA Merrill Lynch are the joint bookrunners.

The deal, announced Tuesday morning, was upsized from $150 million and came in below yield talk of 6.375% and 6.5% (see related story elsewhere in this issue).

RenaissanceRe leads

RenaissanceRe’s new series F preference shares were the volume leader on their first full day on the market with about 3,162,000 shares trading.

The deal priced on Monday.

The securities, trading under the temporary ticker of “RNREF,” were level at $24.95.

MetLife level

MetLife’s new and upsized $805 million issue of 5.625% series E non-cumulative preferred stock remained a high-demand name with about 490,000 shares trading.

The preferreds (NYSE: METPrE), which priced on May 30, were level at $25.25.

Bank of America loses

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock fell with about 462,000 shares trading.

The preferreds (NYSE: BACPrB) were down 1 cent to $25.75.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended down 0.12% at market close, doubling the 0.06% decline in early trading on Tuesday.

The iShares US Preferred Stock ETF was down 3 cents to close at $37.49.

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