Regions frees up, ends flat; PrivateBancorp lists on NYSE; BNY Mellon plans redemption

By Stephanie N. Rotondo

Phoenix, Oct. 26 - Preferred stocks closed the week with a firm tone, though "not by much," a market source reported Friday.

Volume was also not as much as it had been in the last couple of sessions, though Regions Financial Corp.'s new issue was the day's most actively traded issue, with more than 4 million shares changing hands.

Meanwhile, PrivateBancorp Inc.'s 7.125% subordinated debentures due 2042 were admitted to the New York Stock Exchange on Friday.

Also, Bank of New York Mellon announced a redemption of trust preferreds on Friday.

Regions active, steady

Regions Financial's new $500 million of 6.375% series A noncumulative perpetual preferreds topped the day's most actively traded list, according to a market source.

The source said more than 4.3 million shares traded, with the paper ending flat at $24.90.

At midday, the preferreds were pegged at $24.75 bid, $24.87 offered.

The trader said the lackluster performance of both issues was due in part to it being on the edge of the weekend but also noted that disappointing earnings and election nerves were playing a role.

The deal priced Thursday and freed early in Friday's session.

In other recent deals, BB&T Corp.'s $450 million of 5.2% series F noncumulative perpetual preferred stock - a deal that priced Wednesday - was seen at $24.70.

PrivateBancorp lists

PrivateBancorp's 7.125% $25-par subordinated notes due 2042 listed on the NYSE Friday.

The ticker symbol is "PVTD." The paper was trading at $25.40, down from opening levels of $25.45.

The $125 million issue priced on Oct. 11.

BNY Mellon plans redemptions

BNY Mellon announced Friday that it intended to redeem $550 million of trust preferreds in November at par plus accrued dividends.

The called issues are the 6.875% TruPs (NYSE: BKPE) and the 5.95% TruPs (NYSE: BKPF).

The 6.875% securities closed down 7 cents at $26.00, while the 5.95% preferreds fell 2 cents to $25.36.

Both issues saw very thin trading on the day.

The new York-based bank will pay a total of $25.40582 for the 6.875% preferreds and $25.1033 for the 5.95% paper, including accrued dividends.

Though both of the redeemed issues were not all that busy, the firm's recent 5.2% series C noncumulative perpetual preferreds (NYSE: BKPC) made the most active list for Friday, trading down a penny to $25.04.

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