Oxford Square taps $25-par note market; Duke Energy preferreds close slightly better

By James McCandless

San Antonio, March 27 – Increased issuance in the $25-par note market on Wednesday served as a backdrop for a mixed day in secondary trading.

Oxford Square Capital Corp. priced $42.5 million of $25-par seven-year notes at par on Wednesday.

In the secondary, Duke Energy Corp.’s new 5.75% series A cumulative redeemable perpetual preferred stock ended slightly better.

Meanwhile, in the banking and finance sectors, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities continued to climb.

Sector peer JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferreds followed the positive trend.

Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferred stock fell on the back of negative headlines.

Real estate name Brookfield Property Partners LP’s 6.5% series 1 class A cumulative redeemable perpetual preferred units ended better.

Oxford Square prices

Oxford Square priced $42.5 million of $25-par seven-year notes (Egan-Jones: A-) at par on Wednesday.

There is a $6,375,000 greenshoe.

The deal was announced on Tuesday.

Ladenburg Thalmann & Co. Inc. and BB&T Capital Markets are the joint bookrunners.

Lead managers are B. Riley FBR, Inc. and Incapital LLC.

The notes are redeemable on or after April 30, 2022 at par.

Duke better

Meanwhile, in the secondary market, electric utility Duke Energy’s new 5.75% series A cumulative redeemable perpetual preferred stock ended the session slightly better.

The preferreds, trading under the temporary symbol “DUEKL,” were up 1 cent to close at $25.40 on volume of about 2.6 million shares.

On its first trading day on Tuesday, the preferreds closed at $25.39.

Citigroup up

Meanwhile, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities continued an upward swing.

The preferreds (NYSE: CPrN) picked up 23 cents to close at $27.34 with about 492,000 shares trading.

On Tuesday, the preferreds gained 17 cents.

Elsewhere in the sector, JPMorgan’s 5.75% series DD non-cumulative preferreds were similarly higher by session’s end.

The preferreds (NYSE: JPMPrD) added 35 cents to close at $26.15 on volume of about 469,000 shares.

Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative perpetual class A preferreds closed negative, bucking the trend set by other top traders.

The preferreds (NYSE: WFCPrQ) dropped 18 cents to close at $25.72 with about 425,000 shares trading.

The company was marred by negative headlines on Wednesday concerning its decline in revenues in the last year.

Brookfield better

Real estate developer Brookfield Property’s 6.5% series 1 class A cumulative redeemable perpetual preferred units rose.

The preferreds (Nasdaq: BPYPP) edged up 2 cents to close at $24.83 on volume of about 429,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index closed the session down 0.06% after starting the session up by 0.08%.

The iShares US Preferred Stock ETF was down 9 cents to $36.34.

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