Truist sells $500 million preferreds; Fortress plans reopening; Comerica wraps investor calls

By Cristal Cody

Tupelo, Miss., May 19 – Truist Financial Corp. priced an upsized $500 million of perpetual non-cumulative preferred stock on Tuesday on the tight side of talk.

The deal follows Brighthouse Financial Inc.’s upsized $350 million offering of $25-par 6.75% perpetual series B non-cumulative preferred stock that priced on Monday on the tight side of talk.

Meanwhile on Tuesday, Fortress Biotech, Inc. marketed an add-on to its 9.375% $25-par series A perpetual preferred stock.

Comerica Inc. wrapped a two-day session of fixed income investor calls on Tuesday for an offering of perpetual preferred stock (Baa2).

Preferred stocks remained mostly stronger over the session.

The Wells Fargo Hybrid and Preferred Securities index headed out up 0.45% after closing 0.65% better in the previous session.

The U.S. iShares Preferred Stock ETF closed up 2 cents, or 0.6%, at 33.94 after closing Monday up 48 cents, or 1.44%.

Fortress Biotech’s 9.375% preferreds (Nasdaq: FBIOP) softened 80 cents, or 4.12%, to $18.50 a share on trading volume of about 20,000 shares on Tuesday.

Truist Financial upsizes

Truist Financial priced $500 million of 5.25% perpetual series O non-cumulative preferred stock (Baa2/BBB-/BBB) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial talk was in the 5.25% to 5.375% area.

The deal was upsized from $200 million.

Truist sold 20 million shares of $25-par depositary shares with each share representing 1/1000th of a share of the preferred stock.

The deal includes an over-allotment option of $75 million, or 3 million depositary shares.

BB&T Capital Markets, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

The company plans to list the depositary shares on the New York Stock Exchange under the ticker symbol “TFC.PO”.

Charlotte, N.C.-based Truist Financial is a bank holding company formed following the merger in 2019 of Branch Banking & Trust Co. and SunTrust Banks, Inc.

Fortress Biotech plans add-on

Fortress Biotech marketed an add-on to its 9.375% $25-par series A perpetual preferred stock (Nasdaq: FBIOP) on Tuesday, according to a 424B5 filing.

The Benchmark Co. and ThinkEquity are the bookrunners.

The securities will have the same terms as the 2,054,917 currently outstanding shares of the series A preferred stock.

Fortress Biotech originally issued the preferreds in a $25 million offering at par on Nov. 14, 2017.

The biopharmaceutical company is based in New York.

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