Preferred stock calendar eyed; recently priced issues in focus; Schwab preferreds active

By Stephanie N. Rotondo

Seattle, July 29 – A preferred stock trader said end-of-the-month dealings were rather subdued on Friday.

“It’s the end of the month, a lot of people are on vacations,” he said.

That being said, he did note that he was hearing the new issue calendar should be “decent” in the coming week, though he had no details on what deals might be coming.

As for this week’s new issues, Capital One Financial Corp.’s $600 million of 5.2% series G noncumulative preferreds were seen at $25.03 in mid-morning trades. The issue eventually closed at $25.04, off 2 cents.

The deal came on Tuesday. It is trading under a temporary symbol, “CITLP.”

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC ran the books.

OM Asset Management plc’s $125 million of 5.125% $25-par senior notes due 2031 were meantime pegged at $24.90 offered in early trading, though a market source saw the issue ending at $24.94.

The notes priced Wednesday, coming upsized from $100 million and tighter than the 5.25% price talk. BofA Merrill Lynch, Wells Fargo and Citigroup Global Markets Inc. were the joint bookrunners.

From Monday’s business, Bank of New York Mellon Corp.’s $1 billion of 4.625% $1,000-par series F fixed-to-floating rate noncumulative preferreds remained slightly soft, falling under par to 99.87, according to a source.

BofA Merrill Lynch, Citigroup, Morgan Stanley, UBS Securities and BNY Mellon Capital Markets LLC were the underwriters on that issue.

Among deals priced earlier in July, Dominion Resources Inc.’s $800 million of 5.25% 2016 series A $25-par enhanced junior subordinated notes due 2076 (NYSE: DRUA) continued to be actively traded, with over 1 million of the notes trading on Friday.

The volume in the issue made the security the day’s top trader. For its part, Capital One’s new issue was second most-active, with just under 1 million shares trading.

The Dominion notes traded up 35 cents, or 1.39%, to $25.59.

Away from the new and recent deals, Charles Schwab Corp.’s 5.95% series D noncumulative preferreds (NYSE: SCHWPD) were trading actively, but without any fresh news to act as catalyst.

The preferreds improved 11 cents to $27.49.

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