Awaiting Pricing on First Citizens Preferred

We are awaiting the pricing on the new preferred issue from First Citizens Bancshares (FCNCA) as it was not priced yesterday–which mcg noted in yesterdays comments.

It will have a permanent ticker of FCNCP when it does trade on the permanent exchange. It will likely trade OTC Grey market 1st, but the ticker has not been announced.

As Bob P noted if the coupon is decent (above 5%) this issue may trade hot out of the gate–but we will wait and see.

11 thoughts on “Awaiting Pricing on First Citizens Preferred”

  1. Any thoughts on this currently? It goes Ex on the 28th, but almost 4 dividends above redemption right now. I bought a small position when it IPO’d. Thinking of letting it go and maybe get back in if the price drops to mid $25’s

    1. Mark, you could probably ask this q, for about 50+ other preferreds that have upcoming dividends. The answer lies in whether you need the income or not. If you need the income, then hold. If you had a small position to begin with for flipping, then it might be a good time for that. You can never go wrong taking profits. Then it is the hunt for where to put the cash (which I am in that position now 🙂

      My parents have banked at one of their branches for like 50 years. I dont see anything scary in their statements. In this environment, it will probably bounce back up after the divy payment in 2-3 weeks if you were holding)

    1. Well that certainly sucks. I’ve been waiting patiently for this thing. I just looked thru my Watch List on Schwab and there still is really nothing there worth buying. All still way overpriced and down 20 or 30 cents but still not worth chasing.

  2. I’m a little surprised a new preferred issue would be brought to market while we’re in the midst of all the price volatility we’ve seen the past 2 weeks. I hope it gets there…might be a touch higher div rate than it would otherwise be if markets were calmer.

    1. On one hand, lots of volatility makes it a bad time for IPOs. On the other hand, IG bonds are at all time highs, so maybe a good time to IPO an IG preferred.

    2. JayYoung–I suspect they initially believed the ‘excitement’ was over—Not.

  3. Will be really interesting to see how this prices. PFF is back to the July-November range. Will it price in line with IPOs from that timeframe or with a lower yield reflecting the drop in the 10 year? Rationally, yield should be a little higher than something like WFC-Z (4.75%) trading at par.

  4. I called their Treasury Dept. this morning early as they are on east coast time and their treasurer told me they are just waiting for UBS and Sandler to price it. There was a 3rd underwriter too but I forgot the name.

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