Bank of America offers $25-par preferreds; Banc of California prices; new preferreds mixed

By Cristal Cody

Tupelo, Miss., Oct. 27 – Bank of America Corp. offered $25-par series NN perpetual non-cumulative preferred stock (Baa3/BBB-/BBB) in the primary market on Tuesday.

Initial price talk is in the 4.625% area, a source said.

In addition, Banc of California, Inc. sold $85 million of 10-year fixed-to-floating-rate subordinated notes (Kroll: BBB-) during the session.

Deal volume week to date also includes Monday’s issuance from Bank of New York Mellon Corp., which priced $582.5 million of 3.7% series H $1,000-par noncumulative perpetual preferred shares (Baa1/BBB/BBB+).

The preferreds priced tighter than talk in the 3.875% area.

Wells Fargo, Fulton improve

Financial preferreds were modestly better on Tuesday.

Wells Fargo & Co. (A2/BBB+/A+)’s 4.7% $25-par series AA non-cumulative perpetual class A preferred stock priced on Wednesday headed out up 6 cents, or 0.24%, at $24.98 on about 1.43 million shares traded.

The preferreds were admitted for temporary trading under the symbol, “WFCCL.”

Wells Fargo sold $1.17 billion of the preferreds on Wednesday tighter than guidance in the 4.75% to 4.875% area.

Wells Fargo plans to list the issue on the New York Stock Exchange under the symbol “WFCPrA.”

Fulton Financial Corp.’s 5.125% series A fixed-rate non-cumulative perpetual preferred stock also continued to gain over Tuesday’s session.

The preferreds, traded under the temporary symbol “FULPP,” were up 5 cents to $25.75 on about 184,000 shares trading over the morning and headed out better at 25.80 on trading volume of about 213,000 shares.

Fulton Financial sold $200 million of the $25-par preferreds on Thursday.

The company plans to list the preferreds on the Nasdaq under the symbol “FULTP.”

In other over-the-counter trading, U.S. Bancorp’s new 3.75% series L non-cumulative perpetual preferred stock (A3/BBB/BBB+) continued to soften.

The preferreds, trading under the temporary symbol “UBKPL,” declined 33 cents, or 1.34%, to $24.30 on about 171,000 shares traded.

U.S. Bancorp sold $500 million of the $25-par preferreds on Oct. 20.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “USBPrQ.”

Stocks were mixed on Tuesday after declining over Monday’s session.

The U.S. iShares Preferred Stock ETF edged up 2 cents, or 0.05% to $36.77.

The Wells Fargo Hybrid and Preferred Securities index fell 0.12%.

The Dow Jones industrial average finished the day off 0.8% after closing Monday down 2.29%.

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