Valley National Bancorp Sells a Fixed to Floating Preferred Issue
By: Tim McPartland,
New Jersey banker Valley National Bancorp (ticker:VLY) has sold a new issue of Fixed to Floating preferred shares and the shares will begin trading tomorrow on the OTC Grey Market.
The shares carry an initial coupon of 6.25% which will remain in effect until 2025 which is also the 1st redemption date (fixed to floating issues normally have 10 years to 1st possible redemption date instead of the more typical 5 years).
In our opinion the coupon on this issue isinadequate. 6.25% on a non investment grade bank does not compensate one for their risk (in our opinion).
Details of the issue are here.