Stifel, BNY Mellon tap $25-par market; Modular Medical on deck; Citigroup slides

By James McCandless

San Antonio, May 12 – By the end of the Tuesday session, the preferred market saw overall negativity.

The primary market was bustling as Stifel Financial Corp. priced a $200 million offering of $25-par series C non-cumulative preferred stock at par with a dividend of 6.125%.

Bank of New York Mellon Corp. came in with a $1 billion offering of $1,000-par series G non-cumulative perpetual preferred stock with a dividend of 4.7%

Also, Modular Medical, Inc. announced plans to price an offering of up to $50 million $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 13%.

Leading in the secondary, Citigroup Inc.’s 6.875% series K fixed-to-floating rate non-cumulative preferred stock slid lower.

Elsewhere in the finance space Wintrust Financial Corp.’s new 6.875% series E fixed-rate reset non-cumulative perpetual preferred stock also declined.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved, going against the trend.

Telecom services provider AT&T Inc.’s 4.75% series C perpetual preferred stock and its 5% series A cumulative perpetual preferreds stock were both negative.

Meanwhile, REIT Invesco Mortgage Capital Inc.’s 7.75% series A cumulative redeemable preferred stock jumped.

Stifel prices

Stifel priced a $200 million offering of $25-par series C non-cumulative preferred stock (BB-/BB-) at par with a dividend of 6.125%.

There is a $25 million greenshoe.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after June 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event.

BNY Mellon’s deal

BNY Mellon came in late Tuesday with a $1 billion offering of $1,000-par series G non-cumulative perpetual preferred stock with a dividend of 4.7%.

The deal came in under talk for a yield in the 5.25% area.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets, LLC are the bookrunners.

The dividend is fixed until Sept. 20, 2025, then resets to a rate equal to the five-year Treasury plus 435.8 basis points. The dividend resets every five years thereafter.

The preferreds are redeemable on or after Sept. 20, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event at par.

Modular Medical on tap

Also, Modular Medical announced plans to price an offering of up to $50 million $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 13%.

The deal also comes with common stock purchase warrants of 6 million shares at $11.00 per share.

The preferreds are redeemable after three years. Prior to that, the preferreds are redeemable within 120 days after a change of control.

Citigroup lower

Leading in the Tuesday secondary space, Citigroup’s 6.875% series K fixed-to-floating rate non-cumulative preferred stock spent the day sliding.

The preferreds (NYSE: CPrK) were down 18 cents to close at $26.80 on volume of about 493,000 shares.

Elsewhere in the finance space, Wintrust’s new 6.875% series E fixed-rate reset non-cumulative perpetual preferred stock also declined.

The preferreds, trading under the temporary symbol “WTFNL,” trailed by 4 cents to close at $25.15 with about 277,000 shares trading.

On Monday, the preferreds added 3 cents.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved, going against the trend.

The preferreds (NYSE: ALLYPrA) rose 8 cents to close at $22.22 on volume of about 198,000 shares.

On Monday, the preferreds gained 6 cents.

AT&T off

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock and its 5% series A cumulative perpetual preferreds stock were both negative at the end of the afternoon.

The series C preferreds (NYSE: TPrC) shaved off 2 cents to close at $22.89 with about 320,000 shares trading.

On Monday, the preferreds dropped 28 cents.

The series A preferreds (NYSE: TPrA) were pushed down by 9 cents to close at $24.94 with about 263,000 shares.

Invesco jumps

Meanwhile, real estate investment trust Invesco Mortgage’s 7.75% series A cumulative redeemable preferred stock jumped higher.

The preferreds (NYSE: IVRPrA) improved by $4.58 to close at $18.90 on volume of about 245,000 shares.

Late Monday, the company declared quarterly dividends for its common and preferred stocks.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day lower by 0.18%, extending a 0.07% loss from early Tuesday trading.

The iShares US Preferred Stock ETF was down 15 cents $34.10.

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