BNY Mellon, RiverNorth price; CIT Group leaps higher; Truist preferreds lose

By James McCandless

San Antonio, Oct. 16 – At the end of the week, the preferred space continued a downward trend.

From the primary pipeline, BNY Mellon Municipal Bond Infrastructure Fund, Inc. priced a $75 million offering of remarketable variable rate MuniFund term preferred shares.

Also, RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. priced a $55 million offering of $25-par series A cumulative preferred stock with a dividend of 4.375% at par.

Leading the secondary market, CIT Group Inc.’s 5.625% series B non-cumulative preferred stock leaped higher.

Elsewhere in the finance space, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was seen losing.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferreds followed the day’s negativity.

Real estate investment trust’s Invesco Mortgage Capital Inc.’s 7.5% series C fixed-to-floating rate cumulative redeemable preferred stock was under pressure.

Meanwhile, oil and gas company Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units declined.

BNY Mellon prices

Coming down the late Friday primary pipeline, BNY Mellon Municipal priced a $75 million offering of remarketable variable rate MuniFund term preferred shares.

The offering was made to two “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933.

RiverNorth’s deal

Also, RiverNorth priced a $55 million offering of $25-par series A cumulative preferred stock (A1) with a dividend of 4.375% at par.

There is an $8.25 million greenshoe.

UBS Securities LLC is the bookrunner.

The preferreds are redeemable on or after Nov. 15, 2025 at par. Prior to that, the company can redeem the preferreds in order to maintain its status as an investment company or if its shareholders elect to convert the company into an open-end management investment company at par.

CIT Group higher

Leading the Friday secondary market activity, CIT Group’s 5.625% series B non-cumulative preferred stock jumped higher.

The preferreds (NYSE: CITPrB) were up $2.53 to close at $25.51 on volume of about 443,000 shares.

The company announced on Friday that it had struck an agreement to merge with First Citizens Bancshares in an all-stock deal, with common stock shareholders getting 0.0620 of a share of First Citizens’ class A common stock for every CIT share owned.

Elsewhere in the finance space, Truist’s 4.75% series R non-cumulative perpetual preferred stock was seen losing at the end of the session.

The preferreds (NYSE: TFCPrR) dipped 15 cents to close at $26.62 with about 244,000 shares trading.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferreds followed the day’s negativity.

The preferreds (NYSE: COFPrJ) shaved off 12 cents to close at $24.84 on volume of about 222,000 shares.

Invesco under

REIT Invesco Mortgage’s 7.5% series C fixed-to-floating rate cumulative redeemable preferred stock was under pressure.

The preferreds (NYSE: IVRPrC) fell 12 cents to close at $20.25 with about 381,000 shares trading.

Energy Transfer off

Meanwhile, oil and gas company Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units declined.

The preferreds (NYSE: ETPPrE) gave up 25 cents to close at $20.89 on volume of about 253,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week 0.31% lower, a little frather down than the 0.03% slip in early Friday trading.

The iShares US Preferred Stock ETF was down 13 cents to $36.78.

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