M&T Bank prices $1,000-par preferreds tight to price talk; People’s new $25-pars improve

By Stephanie N. Rotondo

Seattle, Oct. 25 – The preferred stock market was firming up again on Tuesday, which was helping the primary market continue to push out deals.

The Wells Fargo Hybrid and Preferred Securities index finished up 32 basis points, after being up 8 bps at mid-morning.

M&T Bank Corp. sold $500 million of 5.125% $1,000-par series F fixed-to-floating rate noncumulative preferreds as the day wound down.

Price talk was 5.25%.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are running the books.

After the close, a market source said the deal was launched at 5.125%, though he had not seen it actually price. He placed the paper at 100.375 bid, 100.75 offered in the gray market.

When declared, dividends will be fixed and payable semiannually through Nov. 1, 2026. After that date, the rate will begin to float at Libor plus 352 bps and will be paid on a quarterly basis.

As for Monday’s deals, People’s United Financial Inc.’s $250 million offering of 5.625% $25-par series A fixed-to-floating rate noncumulative preferreds continued to skyrocket, with a trader seeing the paper at $26.12 bid early in the day.

He opined that the massive jump over parity was due to the manager dealing with a large short position.

By day’s end, the paper was seen at $26.20, which one market source deemed as “impressive.”

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