Texas Capital prices new $25-par issue; Argo also sells $25-par notes; Annaly to list on NYSE

By Stephanie N. Rotondo

Phoenix, Sept. 18 - The new issue machine kept on cranking Tuesday, and "another big deal" was already slated for Wednesday, according to a preferred stock trader.

"They're really stuffing the goose," he said.

Overall, a market source said the more-liquid segment "looked redder than it probably was." Generally, the preferred market was down about 2 cents on average for $25-par securities.

Texas Capital Bancshares Inc. priced a $100 million sale of 6.5% $25-par subordinated notes due 2042.

Argo Group US Inc. priced a $125 million offering of $25-par senior notes due 2042. However, traders didn't see many markets for that issue.

A trader said that Annaly Capital Management Inc.'s 7.5% series D cumulative redeemable perpetual preferreds are expected to list on the New York Stock Exchange on Wednesday.

Texas Capital prices new issue

Texas Capital Bancshares launched a $100 million sale of 6.5% $25-par subordinated notes due 2042 on Tuesday.

The deal came at the tight end of talk.

A market source quoted the issue at $24.625 bid, $24.75 offered.

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.

Argo sells $25-par notes

Argo Group US priced $125 million of 6.5% $25-par senior notes due 2042.

The deal came at the tight end of talk.

Traders didn't see much action in the paper.

One trader saw an offer of $24.75 for the notes in the gray market ahead of pricing, though he remarked it "could just be someone testing the waters."

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

Proceeds will be used to redeem outstanding trust preferreds and for general corporate purposes, which may include the repayment of debt.

Argo is a Hamilton, Bermuda-based underwriter of specialty insurance and reinsurance.

Annaly to list

Annaly Capital's recent 7.5% series D preferreds are expected to list on the NYSE on Wednesday under the ticker symbol "NLYPD."

The preferreds were pegged at $25.02 on Tuesday.

The $400 million deal came upsized from $100 million on Sept. 6.

Annaly is a New York-based real estate investment trust.

Recent deals busy

Among other recent deals, Torchmark Corp.'s new $125 million of 5.875% $25-par junior subordinated debentures due 2052 were trading around par, a trader said. That deal priced Monday.

Bank of New York Mellon Corp.'s recent 5.2% series C noncumulative perpetual preferreds were inching back up after falling off on Monday. A trader saw the preferreds offered at $24.80 at midday.

However, by the bell, a market source said the issue was flat at $24.75.

PNC Financial Services Group Inc.'s $450 million of 5.375% series Q noncumulative perpetual preferreds were seen at $24.70.

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