TriState Capital Prices Preferred Issue

Bank holding company Tristate Capital (NASDAQ:TSC) has priced their new issue of fixed to floating rate preferred.

The shares are priced with a nice 6.375% initial coupon which remains in effect until 2026 after which the coupon will float at 3 month Libor plus a spread of 4.088%.

Shares are unrated by Standard and Poor’s and Moody’s, but are rated BBB- by Kroll Bond Rating Agency.

The company is selling 2.8 million shares with another 420,000 available for overallotments.

The dividends of course are non cumulative (being a banking company), but will be qualified.

The shares will trade with ticker TSCBP once they trade on NASDAQ.   Shares in the mean time will trade on the OTC Grey Market under temporary ticker TRSXL.  We expect good demand for the issue.

The pricing term sheet can be read here.

72 thoughts on “TriState Capital Prices Preferred Issue”

  1. TRSXL opened at 25.90. I lowballed at 25.70 and got a partial fill. Patience rewarded since today is the first day that Merrill would let me bid on this puppy.

    Re: The new Ford offering, Merrill is showing it coming up in the system but not taking bids yet.

    Still no access to AQNB yet, either.

    Also, for those in the new Spire offering, some little news:
    Wells Fargo downgrades Spire Inc. Common Stock (NYSE:SR) from Outperform to Market Perform.

      1. I have a bid at 25.40 but it probably wont get filled. I am not going to chase anything in this market. In fact I sold off my 2 shippers today as they were both up 5% (since i purchased).

      2. Tim, help get that Algonquin issue up and trading with ticker so we can watch that one jump too. 🙂

      3. Yes and I pulled my $25 bid. I’m just going to watch the madness from the sidelines. By the way, TSC common not having a good day. Down almost 6% at last look. I wonder what holders of the common know that the preferred buyers aren’t paying attention to.

    1. I called Merrill. eeh. they have it as a penny stock and it is frozen on trading. Really? He is asking why am i trying to trade penny stocks. lol. I felt like i was speaking another language when talking about preferreds and OTC issues, new releases. I finally had a bad experience with Merrill.

      1. Lucky,
        I have battled Merrill for days on this. Apparently, any preferred or ETD’s coming to market with offerings totaling <$300mm are considered 'penny stocks' and thus, will be extremely difficult – if not impossible, to trade with them until they hit a 'big board'. My first bad Merrill experience also after trading this stuff with them for years. All of a sudden, it's now an issue.

        What other brokerages would you guys recommend that usually have good access to pfd's and ETD's coming out for sale?

        1. Can’t recommend Fidelity. There are many, especially F F issues they won’t let you trade online unless you do so when they trade on the OTC. I refer to them as “Mother Hen”.

          1. Thanks Retired… Am looking at Schwab or TDAM as alternatives if Merrill holds this firm stance. I even sent them back the stupid HOLD HARMLESS paperwork but it didn’t matter. They still won’t allow trading. So much for Premium Elite status.

            1. I’ve seen several recommendations on Tim’s site for TD Ameritrade. I believe Grid uses them…amongst others. You’ve seen their commercials, right ? The guy who always says he doesn’t trade (fill in the blank) because “it’s just too complicated”, I think that guy is with Fidelity, lol!

              1. Retired, Vanguard helped me out with Algonquin, and TradeKing almost always has those new OTC issues out the second they trade. But I have had enough of their quirks and hassles that I am throwing in the towel. I have an HSA brokerage through TD but not a regular acct. I opened one up last night and deposited money. In a couple weeks I will go to their office and give them the accounts and say move it all to you guys.
                They arent the best in everything, but overall they best suite my needs and I want to consolidate for convenience. I like the fact they are not a Nanny State and will let you buy any dirtbag or OTC foreign preferred without restrictions.

                1. Both TDAM and Schwab get 5 star ratings from Nerdwallet in a review of OTC heavyweights.

                  Grid, why, if I may ask, would you move to TDAM instead of Vanguard? Is Vanguard lacking in certain areas? I only ever dealt with them re: mutual funds in the past.

                  1. I will list issues for ease…Now keep in mind this doesnt mean they are worse than many just they have no redeeming features that are better than TD and many worse that I need. I started in mutual funds and went there, but have largely moved on so their original purpose no larger serves my needs.
                    1) They wont allow any OTC foreign purchases (they did but now have blocked them.
                    2) Dealt with dumb as dirt people too many times (some are very good though)
                    3) Have lied to me before (forcing me to liquidate issues when others were allowed to keep)
                    4) Have had more bad experiences getting jumped on illiquids with people buying below my stranded bid.
                    5) Randomly block some US preferreds that I have traded before
                    6) Some of my bids wont show up on level 2 of other brokerages on random days (other days it will on same issue)
                    7) Im not a bond guy so not having them wont be a loss (they have robust inventory and better prices I have seen).
                    As you can see my beefs are with illiquids and that is my playpen. So my complaints my not be relevant…Plus Im just old tired and cranky. I want simplicity and TD will serve me best with only one account.

                2. I’ve threatened to leave Fidelity many times. I just need to go do it. I hate calling the trading desk to get an issue they don’t allow you to trades online and then having to ask for the online trading fee. I feel like a beggar. I’m afraid to ask what a it would cost to move all my holdings in kind but I need to get moving. I’m missing out on a lot of opportunities.

                  1. Retired, why would it cost you? Receiving brokerages will give you cash and free trades to move your money to them.

                    1. I’ve seen that but never checked into it. I’m leaning towards TD so I guess I need to look into what they’re offering and go for it. Thanks for reminding me about the free trades on a move.

                  2. I just moved from Fidelity to Schwab. I filled out the paperwork with Schwab. Not contact or forms with Fidelity. It cost me $0. I have one tip for you,
                    Fidelity will not transfer FDZXX – it is their money market mutual fund. Move it to a core money market fund like SPAXX. The whole transfer took about a week (except for FDZXX which I had to liqudate 1st) The basis from Fidelity was transferred to Schwab – so that is not an issue.

                    Why not Vanguard or Etrade. I want an office where I can walk in and talk to a representative. Schwab assigns you one – at no charge. They are not providing investment advice (the one assigned) but they can help you get the services you are entitled to.

                    1. Retired – I did this for the same issue you have. Their policy of not allowing you to trade floating rate issues unless by phone. It’s INSANE

                    2. Unfortunately, there are no offices for any of the major brokerages where I live. It’s just a small resort town but 40 miles south in Coeur d’Alene, ID I’ve seen a TD office. Spokane has a Schwab office but that’s 70 miles away.

                      Nothing is too convenient around here except peace and quiet, lol. It’s pretty much me and a computer.

                      Thanks for the tip on the money market. I keep liquid funds in SPRXX and FDRXX. I’ll look at those first.

                  3. Retired,
                    Just got more info out of Merrill about our issues with them lately. I’ll summarize what the rep wrote:

                    “Last year Merrill instituted a Low Price Securities policy that basically puts the cuffs on trading anything on the small exchanges whereas the volume is low or the float is also low. There are certain tiers for these types of company stock that our compliance office has deemed either tradable by the client/tradable by our trade desk or not tradable at all. It was a big deal last year. We’ve always had a certain policy with highly leveraged ETFs or newer ETFs that haven’t been reviewed/approved yet by our compliance team. There’s a disclosure that they probably already sent to you that states if you have a certain amount of net worth, Merrill will allow you to trade these “blocked” securities. I know a lot of firms don’t have some of these restrictions, but since we are owned by a bank, our options are a bit tighter than the other firms.

        2. Vanguard was able to get me timely access to the new Tri-State (TRSXL) issue although I had to call their fixed-income desk. I had to watch the order for 5 minutes of so and immediately called back when it was rejected (some kind of routing issue they said). Luckily the specialist who helped me was watching my order as well and it executed in the middle of my follow-up call.

          They aren’t the lowest commission though…

          1. Thanks Geo… Yeah, I don’t like the trading fees at Vanguard, especially for assisted trading. When you call in like you did to get access to a new issue, do they nail you for the $7 or $2 standard trade, plus the $20-$25 for broker assistance?
            I know the fees vary depending on how much you have stashed with them.

            1. No – they’ve never surcharged me for broker assistance – it was always the online rate since I couldn’t do it myself online…

    1. Yes. It shows up both on Schwab and Fidelity. I placed an order to buy @$25.30. Looks like low volume trading so far. At the same, I placed a SELL order of 200 shares of the older TRI-State Preferred TSCAP @ $26.95, only because someone bought a big chunk at a ridiculous price of $27.20 with ex div date of 6/13/2019. Sold 200 shares of C-S (6.3%) TBTF SWAN based on YTC to have 800 shares of TRSXL good ’till filled order. Difficult to tell whether it would get filled.

      1. unbelievable. My 200 shares of TSCAP got sold at $26.95 along with C-S. I guess I need to change my bid price to $25.40 perhaps Or $25.35 and hopefully wait for the AQNB. Then in today’s market, AIG-A, a double IG rated SWAN with 5.875% is trading above $26 too. I really hate the low volume though. I chickened out and went back to $25.25 and wait for today’s remaining market action and change the price for tomorrow.

  2. I was able to get 500 at 25.40 online via Schwab. I was hoping for 25.25 but it seems the market has moved up since those initial trades.

    1. @David
      I was told the temporary symbol would not be set up until Thursday and the symbol TRSXL does not display on TD Ameritrade. What
      symbol are you using ? Thanks,Howard

        1. Thank you, David
          It worked by using the Snap Ticket as suggested by Joel A.
          That is the only way it went through, at $25.40 per share,
          which equates to a 6.25% yield for me. Sorry I am replying
          so late but I got tangled up with other trades, etc.

      1. I got the runaround at Fidelity. Told me they couldn’t locate the symbol and that I needed to call the fixed income trading desk. LOL! What a joke.

        1. You always have to call the fixed income desk at Fidelity on these. You should get their number and just call directly. Either that or call the main line and just ask for the fixed income desk.

  3. At TDAmeritrade, I can get a “current bid” of 25.00, but no ask. When I place an order, it says “symbol does not exist”.

      1. LOL – is actually a shout-out to Roger Moore, my favorite Bond, combined with a desire to add more fixed income to my portfolio. 🙂

        1. Timdman:
          Did you use Symbol TRSXL ? It does not display on TD Ameritrade no matter how I search for it. Thanks

          1. Yes, TRSXL, My order did not execute. Bid is now $25.40, ask $25.70. I will leave my bid at $25.25 and let it expire.

    1. TD: was able to enter directly onto Snap Ticket at the bottom of the page , nowhere else, then it shows as an open order. JA

      1. Thank you, David and Joel A.
        It worked by using the Snap Ticket as suggested by Joel A.
        That is the only way it went through, at $25.40 per share,
        which equates to a 6.25% yield for me. Sorry I am replying
        so late but I got tangled up with other trades, etc.

    2. MooreBonds:
      I spoke with TD Ameritrade today. They advised the symbol TRSXL would not be set up for trading online until tomorrow, Thurs, May 23, at the earliest. It does not display for me. David, in a previous comment, says it works on TD now; So, it is a bit of a mystery. I asked what symbol he was using. The OTC pink sheets shows trading, but no brokerage houses do, as best I can tell. If we get lucky they will set up the symbol today. But, for sure, they did confirm the temporary symbol and the cusip #. That’s it for now. Thanks.

      1. Hi Howard – I use TDAM. To trade TRSXL, go to the trade tab, choose stocks/ETFs, and you will get a pop up screen with fill-in boxes. Enter the symbol and in a second, the bid-ask should come up and you can go from there. I used a limit order so you may have to input a limit price in the box. Mine executed a couple of hours ago

        1. W/ TD Ameritrade I used the “snap ticket” little popup window that is on the bottom of my screen. When I entered TRSXL, I get the current bid/ask of 25.48 / 25.70. Volume 50,635. However, when I do the “symbol lookup” on the main screen, it turns up blank/nohting. So if you have to use the Snap Ticket window.

    1. With Vanguard, until a customer calls in an order it won’t get loaded into their system. But I’m not buying this issue so someone else has to make the call.

      1. Its open and running on TradeKing now. Trouble is I am tapped out there and unwilling to sell whats in there. Ask is $25.25. Im pretty engorged on what I got now, so this one wont be a flipper for me. Cant trade them all, I guess.

        1. Ok, I couldnt help myself. I had just enough cash for 100 shares to see if it would execute. It did at $25.25. Maybe I can make a $20 flip down the road, lol.

          1. Maybe you should have bought 2,525 scratch-off tickets. I wonder what the odds are that you would have come out better than a $20 gain in a shorter period of time? lol

            1. Personally for today anyways, I like my Blues ticket better than either one of those options, ha. I only bought the Bank issue to humor myself. No conviction there. Wont be buying any from other accounts once they are tradeable there. The Spire preferred just keeps crawling north. Now its on big board wouldnt surprise me if it holds $26 soon.

              1. Grid… I still can’t believe you haven’t flipped your Blues ticket. I was
                reading today of a Blue’s fan who put down $400 @ 250-1 to win the
                cup. He turned down $27,000 for the ticket.

                1. I saw that Shooligan. He was basically offered the reverse odds one could get by hedging X amount on Bruins to insure a profit either way. I could drive to Tunica to do that myself. But my odds and payout are a lot lower, so it isnt worth my time to hedge out for a few thousand. If I had his bet I would have dont it today. But I wont spoil the fun on my $200 wager. I had
                  a couple grand on 94.5 under bet on them last year. I found myself rooting against my home team and not enjoying game. Then came last game of year that was win and in playoffs or lose and out and cover my bet. I found myself rooting for that loss which I got…Unsatisfying! Never again!

            2. A4I, I already made my $20 including subtracting for commissions. I guess its time to sell. 🙂

      2. Vanguard traded it for 25.25 for me just now. Had to call the fixed-income desk. But it should be available.

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