Preferred stock investors digest U.S. payrolls data; IberiaBank, Huntington see activity

By Christine Van Dusen

Atlanta, May 6 – As investors digested new payrolls data from the United States – which showed the U.S. economy added fewer-than-expected jobs in April – recent new issues from IberiaBank Corp. and Huntington Bancshares Inc. received some attention in the preferred stock market.

The new issue from IberiaBank – $50 million 6.6% series C fixed-to-floating rate noncumulative perpetual preferred stock via Keefe, Bruyette & Woods and BofA Merrill Lynch – traded at $25.30, flat to Thursday. By the close, the notes had jumped up to $25.55.

The bank’s 6.625% series B fixed-to-floating rate noncumulative perpetual preferreds (Nasdaq: IBKCP) traded Friday morning at $25.69, down a penny, before closing at $25.75.

Huntington Bancshares’ new $200 million of its 6.25% series D noncumulative perpetual preferred stock (Nasdaq: HBANO) traded Friday morning at $26.20, up 12 cents. The preferreds closed at $26.17.

The Columbus, Ohio-based bank announced the offering late Monday. Huntington initially sold $350 million of the preferreds on March 14. Another $50 million of a $52.5 million greenshoe was exercised, lifting total issuance to $400 million.

Wells Fargo Securities LLC ran the books on the add-on deal. BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and the Huntington Investment Co. were joint lead managers

Fannie Mae and Freddie Mac were also in focus on Friday morning after putting in a mixed performance on Thursday on earnings reports. Fannie posted stronger earnings, and Freddie released weaker results.

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were spotted Friday morning at $3.77, up 3 cents. The stock closed at $3.70.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FNMAS) were seen at $3.77 on Friday, down 7 cents.

For the quarter, Fannie reported net income of $1.1 billion while Freddie reported a net loss of $354 million, compared to a profit of $524 million the year before.

Hercules flattens, then dips

Hercules Capital Inc. saw its $65.4 million add-on to its 6.25% $25-par notes due 2024 (NYSE: HTGX) trade at $25.04, flat to Thursday. The notes closed Friday at $24.98.

Prior to the add-on, there were $103 million of the notes outstanding. Including the add-on and the exercised over-allotment option, the total outstanding amount is $175.9 million.

Hercules – formerly Hercules Technology Growth Capital Inc. – is a Palo Alto, Calif.-based specialty finance company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.