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Western Alliance Bancorporation Prices Preferred Issue

Arizona banker Western Alliance Bancorporation (WAL) has announced pricing of their new Fixed-Rate Reset preferred.

The issue prices with a meager coupon of 4.25% which will remain fixed about the first 5 years. On 9/30/2026 the coupon will reset to the 5 year treasury plus a fixed spread of 3.452%. After this point the issue will reset every 5 years with the fixed rate spread added to the 5 year treasury.

The issue is non-cumulative and qualified. It is rated Ba1 by Moody’s (1 notch below investment grade) and BBB by Kroll–note that Kroll doesn’t call this investment grade..

The issue trades immediately on the OTC grey market under temporary ticker WALPV.

The pricing term sheet can be read here.

4 thoughts on “Western Alliance Bancorporation Prices Preferred Issue”

    1. I just glanced at the new issue page and I see this with a 26 share price handle. What in the world? Moody’s Ba1 rating which is not terribly exciting. Sure it is qualified which is nice but the low yield offsets any excitement.

      If a person is willing to pay a buck over par for 4% there is so many options available. I kind of understand why those Bridgewater and ConnectOne shot up in price when they offered a 5.x% yield. It was a nice bump for the amount of risk.

      Is the aggressive buying due to that Ba1 from Moody’s? I didn’t expect this one to go so high so fast. Trying to learn here.

      1. The number pf preferreds with a 4% ytc is small…as in next to none. I laughed because it was so ‘unwanted’ that there was next to no allocations market wide. They could have sold much more.

        I never did own wala and thought it’s trading pattern wasn’t very rewarding. I didn’t ever see it over 26.5 went I looked from afar.

  1. Not sure where/how to leave a comment directly to Tim – notice that the master spreadsheet of shares omits BPYPM, a 6.25 pdf from Brookfield’s buy out of the Ltd Partnership in June. …I have some but this little baby strangely(?) – office ppty issues – is floating close to the surface…

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