Huntington, Truist, Pinnacle tap market; AT&T gains ground; Brighthouse preferreds rise

By James McCandless

San Antonio, May 27 – At the end of the preferred session on Wednesday, top traders were in a better position.

In a busy primary space, Huntington Bancshares Inc. priced a $500 million offering of $1,000-par series F non-cumulative perpetual preferred stock at par with a dividend of 5.625%.

Also, Truist Financial Corp. priced a $1 billion offering of $1,000-par series P fixed-rate reset non-cumulative perpetual preferred stock with a dividend of 4.95%.

Pinnacle Financial Partners, Inc. sold a $120 million offering of $25-par series B fixed-rate non-cumulative perpetual preferred stock at par with a dividend of 6.75%.

On top of secondary activity, AT&T, Inc.’s 4.75% series C perpetual preferred stock gained ground.

Meanwhile, insurance company Brighthouse Financial Inc.’s 6.75% series B non-cumulative perpetual preferred stock rose with the rest of the market.

Elsewhere, in the finance space, Truist’s 5.25% series O non-cumulative perpetual preferreds improved.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities received a boost.

JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock finished the afternoon on the positive side.

Huntington prices

On Wednesday, Huntington Bancshares priced a $500 million offering of $1,000-par series F non-cumulative perpetual preferred stock (Baa3/BB+/BB+) at par with a dividend of 5.625%

There is no greenshoe.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, UBS Securities LLC and Huntington Securities, Inc. are the joint bookrunners.

On Oct. 15, 2030, the dividend resets to a rate of the 10-year Treasury plus 494.5 basis points.

The preferreds are redeemable on or after Oct. 15, 2030 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Truist’s deal

Also, Truist priced a $1 billion offering of $1,000-par series P fixed-rate reset non-cumulative perpetual preferred stock (Baa2/BBB-/BBB/DBRS: BBBH) with a dividend of 4.95%.

Morgan Stanley & Co. LLC, RBC Capital Markets Corp. and SunTrust Robinson Humphrey, Inc. are the bookrunners.

The dividend is fixed until Dec. 1, 2025, then resets every five years to the Treasury rate plus 460.5 bps.

The preferreds are redeemable on or after Dec. 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Pinnacle prices

Pinnacle sold a $120 million offering of $25-par series B fixed-rate non-cumulative perpetual preferred stock (Kroll: BBB-/Egan-Jones: BBB+) at par with a dividend of 6.75%.

There is an $18 million greenshoe.

Keefe, Bruyette & Woods, Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Raymond James & Associates, Inc. are the joint bookrunners.

The preferreds are redeemable on or after Sept. 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

AT&T gains

On top of the day’s secondary activity, telecom name AT&T’s 4.75% series C perpetual preferred stock gained ground.

The preferreds (NYSE: TPrC) were up 25 cents to close at $23.40 on volume of about 951,000 shares.

On Tuesday, the preferreds moved up 8 cents.

Brighthouse rises

Meanwhile, insurance company Brighthouse’s 6.75% series B non-cumulative perpetual preferred stock rose with the rest of the market.

The preferreds (Nasdaq: BHFAO) improved by 4 cents to close at $25.40 with about 754,000 shares trading.

On Tuesday, the preferreds jumped up 36 cents.

Truist better

Elsewhere in the finance space, recent Truist’s 5.25% series O non-cumulative perpetual preferreds improved.

The preferreds, trading under the temporary symbol “TFCLL,” garnered 5 cents to close at $25.20 on volume of about 605,000 shares.

On Tuesday, the preferreds picked up 20 cents.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities received a boost, following the trend.

The preferreds (NYSE: ALLYPrA) shot up 42 cents to close at $23.00 with about 438,000 shares trading.

JPMorgan’s 4.75% series GG non-cumulative preferred stock finished the afternoon on the positive side.

The preferreds (NYSE: JPMPrJ) inched up 1 cent to close at $24.86 on volume of about 360,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the session up by 0.41%, higher than the 0.23% upward shift from early Wednesday trading.

The iShares US Preferred Stock ETF was up 21 cents to $34.84.

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