Preferred market ends with positive tone; Valley National pricing new issue; ING active

By Stephanie N. Rotondo

Phoenix, June 16 – The preferred stock market was up in Tuesday trading as the Federal Open Market Committee began its two-day meeting.

The meeting is expected to shed light on whether or not the central bank will increase interest rates in September.

Ahead of any news out of that gathering, the Wells Fargo Hybrid and Preferred Securities index was up 5 basis points.

The new issue calendar had a deal added to the tape. Valley National Bancorp announced a $110 million offering of series A fixed-to-floating rate noncumulative perpetual preferreds.

A trader said price talk was around 6.25%. He said the deal was “trading relatively well in the gray,” pegging the issue in a $24.80 to $24.85 context early in the session. By the end of the day, he saw the issue being quoted at $24.92 bid, $24.95 offered.

Concurrently with the preferred sale, the Wayne, N.J.-based financial institution sold $100 million of 4.55% subordinated debentures due 2025.

Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc. and RBC Capital Markets are running the books on the preferred deal.

ING Groep NV’s 7.375% perpetual hybrid capital securities (NYSE: IDG) remained active on Tuesday after market sources reported Monday that the issue was being called.

However, there has been no official announcement of such actions, though the call date has been placed on July 15.

The securities were trading at $25.45 on Tuesday, down a penny.

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