Recent preferred issues strengthen; JPMorgan weakens ahead of earnings; Magnum Hunter eyed

By Stephanie N. Rotondo

Phoenix, Oct. 13 – The preferred stock market finished firm on Tuesday, and recently priced issues were following suit.

A trader saw the Southern Co.’s $1 billion of 6.25% $25-par series 2015A junior subordinated notes due 2075 (NYSE: SOJA) “moving up nicely” to $25.45, though the issue ultimately settled at $25.43.

That was up 9 cents on the day. The notes were easily the most actively traded security among paying issues, with about 2.35 million notes changing hands.

The $875 million issue priced Oct. 1, and a $125 million greenshoe was fully exercised on Oct. 6.

Meanwhile, TravelCenters of America LLC’s $100 million of 8% $25-par senior notes due 2030 (NYSE: TANP) – a deal priced Sept. 30 – traded “over par,” according to the trader.

Those notes closed at par, up a nickel.

As for Targa Resources Partners LP’s $110 million of 9% series A fixed-to-floating rate cumulative redeemable perpetual preferred units, those moved up to $24.85 bid from a $24.80 to $24.85 context earlier in the session.

JPMorgan Chase & Co. kicked off the third-quarter earnings season on Tuesday after the market closed. Ahead of the release, the bank’s preferreds were weaker.

Also in the secondary, Magnum Hunter Resources Corp.’s preferreds were paring losses from Monday’s session. The preferreds had dropped about 50% on Monday after it was announced late Friday that advisers had been hired to look into strategic alternatives and dividends on the preferreds were suspended.

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