Valley National deal altered to include fixed-to-floating coupon; Annaly lower with market

By Stephanie N. Rotondo

Seattle, July 27 – The preferred stock primary market continued to see deals trickle out on Thursday, as Valley National Bancorp brought an upsized $100 million issue of 5.5% series B fixed-to-floating rate noncumulative preferreds.

Prior to pricing, the Wayne, N.J.-based bank holding company said in a regulatory filing that it had added a fixed-to-floating rate feature to the issue. The dividend will be fixed until Sept. 30, 2022, at which time it will begin floating at Libor plus 357.8 basis points.

One market source said that the issue “has been unusually quiet.”

Earlier in the day, a trader saw the issue at par bid in the gray market.

Keefe Bruyette & Woods Inc. is running the deal.

Meanwhile, Annaly Capital Management Inc.’s $700 million of 6.95% series F fixed-to-floating rate cumulative redeemable preferreds – a deal priced Tuesday – continued to be actively traded.

However, as the overall market was on the negative side, the recently priced issue was following suit, trading off a dime from the open to $24.85.

About 1.73 million of the preferreds changed hands during the session.

The deal freed Wednesday afternoon and began trading under a temporary ticker, “ANNPP.”

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