Enstar Group preparing to tap primary market; Bank of America dips; Synovus declines

By James McCandless

San Antonio, June 19 – The preferred market saw a steady stream of activity amid mixed secondary trading.

Enstar Group Ltd. announced plans to price an offering of $25-par fixed-to-floating rate preference shares on Monday.

Bank of America Corp.’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock declined.

Synovus Financial Corp.’s new $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock moved lower.

RenaissanceRe Holdings Ltd.’s new $250 million series F preference shares also slid.

Enstar plans offering

On Monday, Enstar announced plans to price an offering of $25-par series D fixed-to-floating rate perpetual non-cumulative preference shares.

Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays and HSBC Securities (USA) Inc. are the joint bookrunners.

The preference shares are callable after 10 years.

Bank of America off

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock, reaching the top spot in secondary trading, fell with about 437,000 shares trading.

The preferreds (NYSE: BACPrB) were down 4 cents to $25.71.

Synovus down

Synovus’ new $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock was off with about 352,000 shares exchanged.

The preferreds, which trade under the temporary ticker “SYNVP,” were down 4 cents to $25.76.

RenaissanceRe declines

RenaissanceRe’s new $250 million 5.75% series F preference shares were among the most active with about 326,000 shares trading.

The securities, which trade under the temporary ticker of “RNREF,” were down 1 cent to $24.99.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index closed down 0.05%, coming off the 0.09% decline seen in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 4 cents to close at $37.58.

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