Customers Bancorp prints preferreds; oil prices lift preferreds; housing, energy names up

By Christine Van Dusen

Atlanta, Jan. 22 – Customers Bancorp Inc. sold preferred stock on a Friday that saw the preferred stock market strengthen as the European Central Bank’s stimulus plans helped hoist oil prices above $31, improving investor sentiment.

“People are no longer scared of their shadows; that’s a good thing,” a trader said. “Everything is moving up nicely.”

Energy-linked paper, which rebounded on Thursday, continued to climb on Friday morning. Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) moved up 42 cents to $4.70 early in the session. The notes finished the day at $4.59.

Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP), were up 50 cents to $3.96 in early trading before closing even higher at $4.15.

In other trading on Friday, the new issue of preferreds from Bank of America Corp. – $1 billion 6.2% non-cumulative perpetual preferred stock, series CC, that priced at par of $25.00 on Thursday – hovered at about $24.90, a trader said.

In its new deal, Customers Bancorp priced a $25 million issue of 6.5% fixed-to-floating rate non-cumulative perpetual preferred stock, series D, at par of $25.00, according to a company filing with the SEC.

The issue included 1 million depositary shares.

The preferreds are expected to be listed on the NYSE under the symbol “CUBIPrD.”

UBS Securities and Morgan Stanley were the bookrunners for the deal.

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