Atlantic Union Bankshares Prices New Preferred

Virginia banker Atlantic Union Bankshares (AUB) has priced their previously announced non cumulative preferred.

The coupon will be a fixed rate of 6.875%.

Shares will trade today on the OTC grey market under temporary ticker AUBKL.

The shares are unrated by the big 3 ratings agencies, but are rated BBB- by Kroll Rating Service.

If this issue trades at $25 or less I may buy a position–which likely would be a ‘flip’ as I am not likely to hold a non investment grade issue at this time for long.

The pricing term sheet can be found here.

16 thoughts on “Atlantic Union Bankshares Prices New Preferred”

  1. All of these small banks issuing preferred is a red flag to me. They know defaults are coming and they need to raise cash while they still can.

    1. Agreed. These smaller banks — market caps in the $1-$3 billion range — are vulnerable. Loans to lots of smaller companies, local commercial RE, probably all facing some difficulties. The fact that they are all issuing is a red flag. The yield is therefore not enough, these should be yielding 8%.

  2. This is a hot market issue. Seems everyone is seeing this as a flip so it may not be racing for the heavens.

    1. Im not playing as a race to heaven play, Bob, but these 6 3/4 issues have been jumping out to 25.50 range pretty quickly it appears.

  3. I put in a bid Grid today, see if I get it. Too many people hungry for yield. If its their only outstanding preferred, may be worth the risk,

  4. Yes, I saw that last night on FINRA, so I jumped this morning. Maybe too quickly buying at $24.96 but the shameless IPO flip game seems alive and well again.

      1. Was able to buy at $24.98 (not as fast and efficient as Gridbird). Now seeing it on Fidelity and Vanguard

        1. Hopefully you got it Jay. I had some spare change in Vanguard, TD, and ALLY and bought shares in all 3. Vanguard usually is a mental midget getting these out on time and was surprised I got shares there also so quickly.

          1. Yes I got the trades in Vanguard, which is not as user friendly but got it in there before I could in Fidelity

          2. Grid, I had a partial fill at 24.95 and moved it up to 25.10 and picked up another 100 so about 1/3rd of what I wanted. Letting the other 2/3rd bid float to Friday, see what happens. First quarter report was 4/28 so could be a good ride up to July 24th before the 2nd qtr. report ?

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