BB&T prices $1,000-par preferreds; Deutsche Bank mixed; Cedar Realty Trust improves

By James McCandless

San Antonio, July 22 – The preferred space trended higher in the Monday session as top-volume traders finished mixed.

In primary activity, BB&T Corp. priced a $1.7 billion offering of $1,000-par series N fixed rate reset non-cumulative perpetual preferred stock with an initial dividend 4.8%.

Leading trading, Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities and Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were mixed.

Elsewhere in finance, Capital One Financial Corp.’s 6.2% series F fixed rate non-cumulative perpetual preferred stock slipped.

Sector peer KeyCorp’s 5.625% series G fixed rate perpetual non-cumulative preferreds were on the rise.

REIT Cedar Realty Trust, Inc.’s 6.5% series C cumulative redeemable preferred stock also improved.

In communications, Qwest Corp.’s 6.5% notes due 2056 gained throughout the day.

BB&T prices

In the primary space, BB&T priced a $1.7 billion offering of $1,000-par series N fixed rate reset non-cumulative perpetual preferred stock with an initial dividend 4.8%.

The deal, announced Monday morning, came in under talk for a dividend in the 5% area.

Beginning Sept. 1, 2024 and every five years thereafter, the dividend resets to a rate equal to Treasuries plus 300.3 basis points.

Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

The preferreds are redeemable on any dividend payment date on or after Sept. 1, 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

Deutsche Bank mixed

Leading secondary trading, Deutsche Bank’s 6.55% and 8.05% trust preferred securities finished the day mixed.

The 6.55% preferreds (NYSE: DXB) were down 11 cents to close at $24.19 on volume of about 351,000 shares.

The 8.05% preferreds (NYSE: DKT) were up 6 cents to close at $25.29 on volume of about 330,000 shares.

Elsewhere in the finance space, Capital One’s 6.2% series F fixed rate non-cumulative perpetual preferred stock slid lower.

The preferreds (NYSE: COFPrF) dipped 1 cent to close at $26.04 with about 267,000 shares trading.

Sector peer KeyCorp’s 5.625% series G fixed rate perpetual non-cumulative preferreds were seen on the rise.

The preferreds (NYSE: KEYPrK) picked up 6 cents to close at $25.77 on volume of about 235,000 shares.

Cedar Realty gains

Meanwhile, real estate investment trust Cedar Realty’s 6.5% series C cumulative redeemable preferred stock was also improving.

The preferreds (NYSE: CDRPrC) gained 7 cents to end the day at $22.39 with about 209,000 shares trading.

Qwest higher

In the communications space, Qwest’s 6.5% notes due 2056 were seen gaining throughout the day.

The notes (NYSE: CTBB) were up 12 cents to close at $24.14 on volume of about 170,000 notes.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed Monday up by 0.04%, hovering around the 0.05% gain from early activity.

The iShares US Preferred Stock ETF was up 1 cent to $37.20.

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