Truist Financial to Offer New Preferred

Truist Financial (TFC), which is the new name of the company composed of BB&T and SunTrust Bank which previously merged, is offering a new preferred issue.

The issue will be non-cumulative and investment grade and will have the relatively typical terms.

The company has a number of other issues outstanding which can be seen here.

The preliminary prospectus can be read here.

Thanks to mcg and EarlyBird for ferreting this out earlier today.

17 thoughts on “Truist Financial to Offer New Preferred”

  1. New “Truist” has priced at 5.25%, which is right on the money given where the other TFC issues were trading.

    I like, and own, the F and the G, and would be a buyer so long as they are at or under redemption. Would not touch the H unless it goes under redemption, too.

    If you’re after some call protection, I would be adding the new issue, so long as the price doesn’t run away. Post market it has traded just below 25 but in institutional quantities. By the time you can buy it tomorrow it may be over 25.

    There are also 3 TFC preferred that trade as bonds. Would not touch them now. Yield are lower than the exchange traded issues and all are looking at resetting lower. The exchange traded issues are all fixed rate issues.

    In this instance the “retail” issues have it all over the “institutional” issues.

  2. PPL was still paying around 6% dividend on the common so in that sense it is underpriced. Have to see what earnings are like I guess.

    The Canadian banks seem attractively priced as well, but I know you said you didn’t want any of those.

    1. Thank You Scott. I appreciate your input. I do prefer preferreds over common but I must admit the common has a yield of 6.40% today as the common is trading at $25.90. Iam starting to “warm up” to some of these commons even though if you look at the 52 week range they have extremely wild swings especially for a large utility with over 10 Million customers. Interesting info for sure and I do thank you. I did also take a look at their only preferred ( PPX ) which is callable at anytime. I only consider buying those if I can get them right at par.

    2. I like PPL’s record. The payout is a little high. Any risk from operating in UK? I agree to buy a preferred I want a higher yield than the common. Why is yield so high?

      No relation, right? We are from Texas but my dad was stationed in Southern Illinois at a training Air Force base during WWII. The greatest danger he faced was the USO dances. 😁

      1. George, we are probably related in some fashion. But you might have to go all the way back to Ireland! My family has been in E. Tennessee since the potato famine drove them there. Mother does the genealogy so I will ask her if she knows anything about a Texas branch. My father fought in WWII as well during the invasion of Italy. He said the Italian girls were very — grateful.

        I think the yield is high on some of these stocks because the prices got driven down when the market tanked and they just haven’t recovered yet. I guess that means people think the earnings will take a hit in the near term, but if you are buying for a year out it might not matter as much. You get paid to wait. I have been lowering my entry prices with Puts and trading on the volatility a bit.

    3. PPL is my largest utility holding and the only one I believe is fairly to under-priced at the moment. Yes it has exposure to the UK “regulations” but so far those have not seemed to be a factor.

  3. Good Morning Tim my Friend and everybody: On a similar note a couple of issues that I own in a big way seem still very attractively priced today in my humble opinion. Both “MS+K” and “STT+D” seem very attractively priced and seem to me to be both solid companies. As an example in Barrons over the weekend a Goldman analyist was quoted as saying about “MS” this: “MS is much better situated than understood. Goldman analyst Richard Ramsden calls it the best positioned bank in a recession and able to withstand interest rates at zero. He went onto say its loan business only 15% of its balance sheet. He went onto say he see’s a 22% upside in the common. Does anybody out there have any utilities that they feel are attractively priced???? Iam following several but they are certainly NOT attractively priced. My issue is Iam “always” having stuff called so have to continously be looking for things. This particular company “Truist” looks good atleast on the surface. BUT, Iam way over weighted in Banks already. They make up around 17 to 18% of my holdings.

    1. MS pfds have lost always trade cheaper than GS/at low prices and higher yields.

      Truist ( dislike the new name) is the new bank….. BBT merged w SunTrust…both banks w good reputations. The Q is how does new issue compare with their outstanding pfds? TFC pfH is 5 5/8% trading at like 25.20

      1. If You Prefer, One does wonder how these boards come up with silly names like “Truist”. Still though, the all-time champ has to be FifthThird.

        1. You know how this works–you hire a consultant for $1 million. Then they get the blame.

        2. I grind my teeth when I hear Canaccord Genuity — wtf?
          I think Fifth Third = 1 & 2/3. Probably safer than a Third Fifth.

        3. “The name “Fifth Third” is derived from the names of the bank’s two predecessor companies, Third National Bank and Fifth National Bank, which merged in 1909.”…old nick names are hard to break

          And BBT pfds have traded very well historically and I think you see these well received

          1. I had assumed that Fifth Third had something to do with financing bootlegging or such.

    2. Hey Chuck
      What do you think of FCNCP at 23.00?, it hasn’t risen along with the other bank Preferred’s

      1. Max; I currently own 13,500 shares of “FCNCP”. So I guess that would give you an answer to your question. Hope this finds you doing well. They’ve been in business since 1898 with 551 branch offices located in 20 states. Their common trades at $361.00 per share. I have spoken to their I R Mgr. and feel comfortable with the company. I will say “this” if I can find a good utility with a good coupon and good call protection I may “Lighten Up” on some of the huge bank positions I do have. The next 6 to 12 months are going to be crucial for many banks.

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