Synovus taps market; Saratoga plans for more $25-par notes; NiSource jumps higher

By James McCandless

San Antonio, Jan. 31 – Amid an active primary space, the preferred secondary market saw robust volume and mixed results.

Synovus Financial Corp. priced $300 million of $1,000-par 10-year fixed-to-fixed rate subordinated notes at par with an initial coupon of 5.9%.

Saratoga Investment Corp. said it plans to sell more of its $25-par 6.25% notes due 2025.

In the secondary, NiSource Inc.’s 6.5% series B fixed-rate reset cumulative redeemable perpetual preferred stock climbed higher.

Elsewhere, in telecom, Qwest Corp.’s 6.125% notes due 2053 were also shooting higher.

Meanwhile, in finance, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities were negative.

Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds declined.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock followed the downward path.

Synovus prices

Synovus priced $300 million of $1,000-par 10-year fixed-to-fixed rate subordinated notes (BB+/BB+) at par with an initial coupon of 5.9%.

The notes, announced Thursday morning, matched size talk of $300 million and talk for an initial coupon in the 6% area.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes are redeemable within 90 days following a regulatory capital treatment event, a tax event, or the company being required to become an investment company.

The dividend is fixed until Feb. 7, 2024, then resets to 337.9 basis points over five-year mid-swap rate.

Saratoga eyes add-on

Saratoga plans to sell more of its $25-par 6.25% notes due 2025.

Ladenburg Thalmann & Co. Inc. and Compass Point Research & Trading, LLC are the joint bookrunners.

BB&T Capital Markets is the lead manager.

Saratoga originally issued $40 million of the notes on Aug. 28, 2018.

The existing notes (NYSE: SAF) were down 20 cents to $25.35 at the Thursday close with about 1,600 notes trading.

NiSource higher

Leading the secondary market, NiSource’s 6.5% series B fixed-rate reset cumulative redeemable perpetual preferred stock moved higher by the end of the session.

The preferreds (NYSE: NIPrB) were up 91 cents to close at $27.38 on volume of about 2.5 million shares.

Qwest up

Meanwhile, in the telecom sector, Qwest’s 6.125% notes due 2053 also shot up by the close.

The notes (NYSE: CTY) gained $1.54 to close at $21.59 with about 2.1 million notes changing hands.

On Wednesday, the notes rose 30 cents.

Citigroup lower

In the finance space, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities took a negative track.

The preferreds (NYSE: CPrN) were lower by 23 cents to close at $25.94 on volume of about 1.9 million shares.

Elsewhere in finance, Goldman Sachs’ series D floating-rate non-cumulative preferreds were also declining.

The preferreds (NYSE: GSPrD) dropped 46 cents to close at $18.65 with about 1.7 million shares trading.

On Wednesday, the preferreds picked up 6 cents.

JPMorgan’s 5.75% series DD non-cumulative preferred stock dropped.

The preferreds (NYSE: JPMPrD) shaved off 12 cents to close at $24.90 on volume of about 1.4 million shares.

On Wednesday, the preferreds edged 1 cent lower.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.16% at the close, giving back a 0.26% gain in early Thursday trading.

The iShares US Preferred Stock ETF was up 6 cents to $36.16.

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