Torchmark prices $25-par debentures; Texas Capital to bring notes Tuesday; BNY Mellon slips

By Stephanie N. Rotondo

Phoenix, Sept. 17 - A preferred stock trader said he heard it is going to be a "busy week" in the primary arena.

"There's probably a couple more deals coming," he said Monday.

Plans for two new issues were announced as the week began. Torchmark Corp. said it was selling $25-par junior subordinated debentures due 2052, and Texas Capital Bancshares Inc. heralded an offering of $25-par notes due 2042.

Torchmark priced its deal, but Texas Capital was reportedly waiting until Tuesday's session to price its new notes.

Meanwhile, Bank of New York Mellon Corp.'s recent 5.2% series C noncumulative perpetual preferreds were trading off, though in heavy dealings.

And PS Business Parks Inc.'s 5.75% series U cumulative preferreds listed on the New York Stock Exchange Monday.

Torchmark prices new issue

Torchmark priced a $125 million sale of 5.875% $25-par junior subordinated debentures due 2052.

The deal came in line with talk.

Ahead of pricing, a trader had seen the issue at $24.70 bid. After pricing, a market source pegged the notes at $24.88 bid, $24.95, which he said was "better than I would have thought. Clearly, they didn't push the pricing."

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers.

Proceeds will be used, together with cash on hand, to redeem in whole or in part the $120 million outstanding 7.1% trust originated preferred securities due 2046 issued by Torchmark Capital Trust III.

That issue (NYSE: TMKPA) fell 74 cents, or 2.85%, to $25.26.

Torchmark is a McKinney, Texas-based insurance holding company.

Texas Capital plans deal

Texas Capital Bancshares' proposed offering of $25-par subordinated notes due 2042 is expected to price around midday on Tuesday, a trader said.

He further remarked that he was "not seeing too many markets," though he said that retail investors were snapping it up. The underlying bank, he said, is "pretty strong."

Price talk is between 6.5% and 6.625%.

Deutsche Bank Securities Inc., U.S. Bancorp and Macquarie Capital Inc. are the joint bookrunning managers.

Proceeds will be used for general corporate purposes, including providing capital support for growth to Texas Capital Bank.

Texas Capital Bancshares is the parent company of Dallas-based Texas Capital Bank.

BNY active but soft

BNY Mellon's $550 million of 5.2% series C preferreds were pegged at $24.75 at midday.

After the bell, a market source said the issue made the day's most active list, though it fell a nickel to $24.75.

The deal priced Wednesday.

PS Business lists

PS Business Parks' $230 million issue of 5.75% series U cumulative preferreds officially listed on the NYSE Monday under the symbol "PSBPU."

The paper closed down 6 cents at $24.79.

The deal priced Sept. 5.

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