Morning Commentary: Greek vote quiets trading of preferreds; Valley National’s preferreds list

By Christine Van Dusen and Stephanie N. Rotondo

Atlanta, July 6 – Trading on the preferred stock market was hindered Monday morning by the weekend’s vote against a new bailout for Greece, a move that sent National Bank of Greece SA’s $2.25 non-cumulative preference shares, series A, down $1.66 to $5.81 on 43,086 shares traded.

Volumes were limited, a market source said. Case in point: Only 40,226 shares of Countrywide Capital V’s 7% capital securities traded on Monday morning as the notes dipped 5 cents to $25.73.

And Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities dropped 17 cents to $27.76 on just 32,009 shares traded.

“It’s pretty quiet,” a trader said. “We were hoping to see a little bit of a sell-off, with the news in Greece, but nothing’s happening. Long bonds are off a point, the Dow’s off 20 points, oil is off 2½ points, and that’s putting a lot of pressure on some issues. But for the most part it’s quiet.”

In other news, Valley National Bancorp’s $115 million of 6.25% series A fixed-to-floating rate noncumulative perpetual preferred stock listed on the New York Stock Exchange on Monday, according to a market source.

The ticker symbol is “VLYPA.” The deal priced June 16.

Concurrently with the preferred, the Wayne, N.J.-based bank priced $100 million of 4.55% subordinated debentures due 2025. The preferred sale was not contingent upon the other offer.

Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc. and RBC Capital Markets were the joint bookrunners of the preferred deal.

When declared, dividends will be fixed and payable semiannually through June 30, 2025. After that, dividends will be payable quarterly and will be calculated at Libor plus 385 basis points.

The preferreds become redeemable on or after June 30, 2025 or within 90 days of a regulatory capital treatment event at par plus accrued dividends.

Proceeds will be used for general corporate purposes, potential strategic acquisitions and investments in regards to regulatory capital.

© 2015 Prospect News.
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