Iberiabank sells fixed-to-floating preferreds; Duke Energy, JPMorgan preferreds improve

By James McCandless

San Antonio, March 28 – Top traders in the preferred market were mostly higher against a mixed overall day.

Iberiabank Corp. priced $100 million of $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock at par with an initial dividend of 6.1% on Thursday.

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

Elsewhere, in the banking and finance space, JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferreds both improved.

Insurance provider American International Group, Inc.’s 5.85% series A non-cumulative perpetual preferred stock pushed higher.

Sector peer Brighthouse Financial, Inc.’s 6.6% series A non-cumulative perpetual preferreds declined.

Real estate developer Brookfield Property Partners LP’s 6.5% series 1 class A cumulative redeemable perpetual preferred units closed up.

Iberiabank prices

Iberiabank priced $100 million of $25-par series D fixed-to-floating rate non-cumulative perpetual preferred stock (BB) at par with an initial dividend of 6.1% on Thursday.

There is no greenshoe.

The deal was announced Thursday morning.

BofA Merrill Lynch and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The preferreds are redeemable on or after May 1, 2024 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed until May 1, 2024, then converts to Libor plus 385.9 basis points.

Duke Energy positive

Leading in the secondary space, Duke Energy’s new 5.75% series A cumulative redeemable perpetual preferred stock were slightly positive by the end of the session.

The preferreds, trading under the temporary symbol “DUEKL,” picked up 2 cents to close at $25.42 on volume of about 1.1 million shares.

On Wednesday, the preferreds gained 1 cent.

JPMorgan improves

Elsewhere, JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferreds both improved.

The series DD preferreds (NYSE: JPMPrD) rose 9 cents to close at $26.24 with about 488,000 shares trading.

On Wednesday, the preferreds jumped up 35 cents.

The series EE preferreds (NYSE: JPMPrC) also gained 9 cents to close at $26.75 with about 321,000 shares trading.

AIG higher

Meanwhile, insurance provider AIG’s 5.85% series A non-cumulative perpetual preferred stock pushed higher on Thursday.

The preferreds (NYSE: AIGPrA) were up 15 cents to close at $25.44 on volume of about 445,000 shares trading.

Sector peer Brighthouse’s 6.6% series A non-cumulative perpetual preferreds saw a negative push in the session.

The preferreds (Nasdaq: BHFAP) lost 19 cents to close at $26.00 with about 316,000 shares trading.

Brookfield up

Real estate developer Brookfield Property’s 6.5% series 1 class A cumulative redeemable perpetual preferred units closed the day up.

The preferreds (Nasdaq: BPYPP) added 2 cents to close at $24.85 on volume of about 335,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day slightly off by 0.01%, giving up a 0.08% gain from early Thursday trading.

The iShares US Preferred Stock ETF was up 6 cents to $36.40.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.