New Jersey banker Valley National (VLY) has announced they will be selling a new fixed rate reset $25/share preferred.
While the banker doesn’t mention a ‘call’ in their filing they do have a fixed to floating rate issue (VLYPO) which is now paying a coupon of around 8.9% so one would think it is possible they would call this issue. It is trading at $24.24.
The preliminary prospectus is here.
Thanks to J for mentioning this one.
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Don’t follow this one but I thought they were similar to Bank OZK in that they are an out of town bank that is a major player in New York City real estate, although they lack OZK’s swagger* and aura of invincibility. I would be looking at Commercial Real Estate exposure here. The pitch from the pundits is that, while VLY’s CRE exposure is high and geographically concentrated, they are diversifying from Metro NY into FL/AZ. JMO. DYODD
* They are working on the swagger. “Valley National Bank, heavy on CRE, is confident despite investor worry.” – Trusted Mortgage Capital, 2/16/2024
I believe 150mm was done. Not sure but maybe they retire VLYPO?
https://www.sec.gov/Archives/edgar/data/714310/000119312524187753/d874188dfwp.htm
$150 million plus option
8.25% and resets at US5Y plus 4.182%
Thanks, af.
The initial temp ticker will be VLYNV.
7/29/2024 16:02:07
VLYNV VALLEY NATL BANCORP FIXED RATE RESET PERP PFD SER C
https://otce.finra.org/otce/dailyList?viewType=Additions
“Valley National Bancorp Earnings Missed Analyst Estimates: Here’s What Analysts Are Forecasting Now”
That they could offer these indicates strength. I’d think 9 was more likely
Hearing the deal is very soft…
Any indication of the size of the offering? The O issue which is floating rose to $24.50. Is there a rumor of redemption?
100mm
If Jerrymac is correct about an 8.25% indication, this new issue seems super expensive — but I’m not a comparative pricing savant like so many others here.
I am told the indication is 8.25% and the reset is 4.18% above the 5 year
Treasury given the current US5Y rate of 4.07% (reset = spread between initial coupon and US5Y at pricing.
Super expensive for the issuer or for buyers? Coupon looks on the low side to me given the rating and extreme CRE exposure.
expensive to the buyer
Landlord, I am not interested for the reason I have no idea how much debt they actually have. This bank has issued debt outside the country. For a smaller regional? Reminds me of the art market in the 70’s and 80’s Picasso limited edition prints of 500 in a series. Except they issued 500 in Japan, the US, France etc. ended up his art was debased in value for most of his later works. Maybe I don’t know what I am talking about, but I sold over a year ago and no interest in getting back in.
many agree with you — trading at $24.67
https://www.otcmarkets.com/stock/VLYNV/overview