B. Riley Financial sells $25-par notes; U.S. Bancorp better; Duke Energy improves

By James McCandless

San Antonio, May 2 – The preferred secondary market ended the day mixed again as a new deal came to the primary market.

B. Riley Financial, Inc. priced an upsized $87 million offering of $25-par five-year senior notes at par with a coupon of 6.75%.

In the secondary, U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock closed slightly better.

Elsewhere in finance, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds moved in the opposite direction.

Regions Financial Corp.’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferred stock saw an uptick.

Meanwhile, in utilities, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferred stock followed a positive trend.

In oil and gas, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units slipped.

B. Riley prices

B. Riley Financial priced an upsized $87 million offering of $25-par five-year senior notes (Egan-Jones: BBB+) at par with a coupon of 6.75% on Thursday.

There is a $13.05 million greenshoe.

The deal was upsized from an initial $50 million.

B. Riley FBR Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and Incapital LLC are the joint bookrunners.

The notes are redeemable on or after May 31, 2021 and prior to May 31, 2022 at $25.50 per note, on or after May 31, 2022 and prior to May 31, 2023 at $25.25 per note and on or after May 31, 2023 at par.

U.S. Bancorp up

Leading trading volume in the secondary market, U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock closed the session slightly higher.

The preferreds (NYSE: USBPrM) were up 2 cents to close at $26.85 on volume of about 766,000 shares trading.

Elsewhere in the finance space, KeyCorp’s 5.625% series G fixed-rate perpetual non-cumulative preferreds finished negative.

The preferreds (NYSE: KEYPrK) lost 2 cents to close at $25.04 with about 418,000 shares trading.

Regions Financial’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferred stock saw a boost in Thursday trading.

The preferreds, trading under the temporary symbol “RXFCL,” added 10 cents to close at $25.50 on volume of about 372,000 shares.

Duke Energy gains

Meanwhile, in utilities, Duke Energy’s 5.75% series A cumulative redeemable perpetual preferred stock improved.

The preferreds (NYSE: DUKPrA) rose by 10 cents to close at $26.04 with about 265,000 shares trading.

On Wednesday, the preferreds fell 5 cents.

Energy Transfer slips

In oil and gas, Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units moved lower.

The preferreds (NYSE: ETPPrE) were down 3 cents to close at $24.85 on volume of about 254,000 shares.

On Wednesday, the preferreds gained 1 cent.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day down by 0.04% after starting the session lower by 0.08%.

The iShares US Preferred Stock ETF was up 8 cents to $36.44.

© 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.