Midday Commentary: PNC Financial's new 4.85% preferreds move above par; Saratoga, Gamco price

By Stephanie N. Rotondo

Phoenix, May 3 - PNC Financial Services Group Inc.'s new $500 million issue of 4.85% series R fixed-to-floating rate perpetual preferreds - a deal that priced Thursday - was doing well in the preferred market on Friday.

"That thing was amazing," a trader said. "We've breached the 4-handle on regional banks' perpetual stuff."

He said the $1,000-par issue was trading up to 100.375 on Thursday. Paper got as good as 101 bid, 101.5 offered in early Friday trading but was around 101 bid, 101.375 offered at midday.

Meanwhile, two issues were priced early in the day. Saratoga Investment Corp. sold $42 million of 7.5% fixed-rate senior notes due 2020 in a deal that was upsized from $40.25 million.

A trader said he saw the notes at $24.70 bid early in the day.

Gamco Global Gold, Natural Resources & Income Trust by Gabelli also came with a deal, a $100 million offering of 5% series B cumulative preferreds.

That issue was trading "above par," a trader said. The notes had already freed from the syndicate.

In new listings, BB&T Corp.'s $450 million of 5.2% series G noncumulative perpetual preferred stock listed on the New York Stock Exchange under the ticker symbol "BBTPG."

Paper was trading at $24.99 at midday, up 9 cents from the previous close.

The issue priced April 24.

And, Royal Bank of Scotland Group plc's preferreds were strong following the bank's earnings announcement, in which it showed a swing to profit.

The 6.6% series S noncumulative dollar preference shares (NYSE: RBSPS) were up 16 cents at $24.35.

© 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.