Banker Regions Financial Corporation (RF) has priced the new preferred stock issue which was previously announced.
The issue prices at 4.45%. The issue is a notch below investment grade. Issue will trade immediately under OTC grey market ticker RFPEL.
The pricing term sheet can be found here.
12 thoughts on “Regions Financial Prices New Preferred Issue”
RF-E has performed poorly as expected, making a new low today. Meanwhile WFC-L has risen 40 points. I might trim a bit of WFC-L here, but wondering what might be a reasonable safe replacement…
WFC-L and BAC-L always trade cheap vs the $25 callable preferreds. I like to swap between them when opportunities arise but neither is overpriced in my opinion.
Showing at RF-E in my TDA account this morning.
When I was a broker, Regions came out with an 8% trust preferred. As this was a solid (This was pre financial crisis) local bank, I resolved to placing this in every account I could. Easiest sales pitch I ever made: 8% !! From Regions!! No commission!! The issue sold out within three hours.
How times have changed. I believe those hoping to flip the new 4.45% issue will be disappointed.
Picked up 105 shares at $24.85. Keep em coming! A lil flip here….a lil flip there….all day everyday.
I see no reason to buy this when I can buy WFC-L as a split investment grade and non callable yielding 5.2%….
WFC-L may decline way more when you want to redeem it – a decline that could be far more than the extra 1%-ish you would get per year.
Don’t get me wrong, I do own a decent chunk of wfc-L. Most was bought when it was $1300s but sold some at $1450s to take nice profits. So I am buying this and such preferreds under par with the aim of flipping for a $0.5-$0.75 gain in a month or two.
Unlike funds / etfs most of us regular investors do not have the luxury of holding ‘forever’ and have a 1-2-3 year time horizon when we may aim to sell it.
Unless WFC common goes over $200 there is no risk of redemption of WFC-L. The L would then be worth something more than 1300. But I don’t expect that to happen in the next five years.
4/28 9;45AM 150 shares @ 24.90 Vanguard
I took a quick look at other bank preferreds that have been issued at 4.25% to 4.625%. Most were investment grade (Regions is a notch below investment grade). I concluded that the Regions share price may climb to $25.40 to $25.80. As a buy and flip, it has the potential to fund a dinner out, but not much more. Not anything that I want to hold long term at 4.45%.