Citizens Financial prices; TriState on tap; Brighthouse preferreds negative

By James McCandless

San Antonio, May 28 – The Thursday preferred market saw an extension of recent positivity, with most top traders ending at higher levels.

In primary activity, Citizens Financial Group, Inc. priced a $400 million offering of $1,000-par series F fixed-rate reset non-cumulative perpetual preferred stock with a dividend of 5.65%.

Also, TriState Capital Holdings, Inc. said it plans to price an add-on to its fixed-to-floating rate subordinated notes due May 15, 2030 with a coupon of 5.75%.

Leading volume in the secondary space, insurance name Brighthouse Financial Inc.’s 6.75% series B non-cumulative perpetual preferred stock ended slightly negative.

Meanwhile, in the finance space, Pinnacle Financial Partners, Inc. new $120 million 6.75% series B fixed-rate non-cumulative perpetual preferred stock closed below par on its first day.

Sector peer JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock declined while its 6% series EE non-cumulative preferreds tracked higher.

Stifel Financial Corp.’s 6.125% series C non-cumulative preferred stock finished the session improving.

Elsewhere, REIT Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares followed the trend.

Citizens prices

In primary activity, Citizens Financial priced a $400 million offering of $1,000-par series F fixed-rate reset non-cumulative perpetual preferred stock (BB+/BB) with a dividend of 5.65%.

There is no greenshoe.

Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citizens Capital Markets, Inc. are the joint bookrunners.

On Oct. 6, 2025, the dividend resets to a rate of the Treasury rate plus 531.3 basis points.

The preferreds are redeemable on or after Oct. 6, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

TriState on tap

Also, TriState announced plans to price an add-on to its fixed-to-floating rate subordinated notes due May 15, 2030 with a coupon of 5.75%.

The offering would supplement the $60 million of notes outstanding.

Stephens Inc., PNC Capital Market LLC and Raymond James & Associates, Inc. are the joint bookrunners.

The coupon is fixed until May 15, 2025, then converts to a floating rate equal to Libor plus 536 basis points.

Coupons are payable May 15 and Nov. 15 of each year during the fixed-rate period.

Brighthouse down

Insurance name Brighthouse’s 6.75% series B non-cumulative perpetual preferred stock ended slightly negative.

The preferreds (Nasdaq: BHFAO) were down 2 cents to close at $25.38 on volume of about 636,000 shares.

On Wednesday, the preferreds improved by 4 cents.

Pinnacle under par

Meanwhile, in the finance space, Pinnacle Financial’s new $120 million 6.75% series B fixed-rate non-cumulative perpetual preferred stock closed below par on its first trading day.

The preferreds, trading under the temporary symbol “PNFPB,” were seen closing at $25.75 with about $25.75 with about 519,000 shares trading.

The deal priced on Wednesday.

Sector peer JPMorgan’s 4.75% series GG non-cumulative preferred stock declined while its 6% series EE non-cumulative preferreds tracked higher.

The series GG preferreds (NYSE: JPMPrJ) dropped 12 cents to close at $24.74 on volume of about 460,000 shares.

On Wednesday, the preferreds inched up 1 cent.

The series EE preferreds (NYSE: JPMPrC) rose 16 cents to close at $27.45 on volume of about 285,000 shares.

Stifel’s 6.125% series C non-cumulative preferred stock finished the session improving.

The preferreds (NYSE: SFPrC) garnered 13 cents to close at $26.30 with about 375,000 shares.

Penn REIT better

Elsewhere, real estate investment trust Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares followed the trend.

The preferreds (NYSE: PEIPrC) shot up 25 cents to close at $6.60 on volume of about 250,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the afternoon up by 0.08%, improving on the 0.05% rise from early Thursday trading.

The iShares US Preferred Stock ETF was up 10 cents to $34.94.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.