Spire sells $250 million preferreds; JPMorgan tranches gain; SoCal Edison improves

By James McCandless

San Antonio, May 14 – The preferred market was gaining throughout the Tuesday session, reversing Monday’s losses.

The primary market saw Spire Inc. price a $250 million offering of $25-par series A cumulative redeemable perpetual preferred stock with a dividend of 5.9% on Tuesday.

Leading secondary trading volume, JPMorgan Chase & Co.’s 6.125% series Y and 5.75% series DD non-cumulative preferred stock were both gaining.

Elsewhere in finance, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended slightly negative.

Sector peer Regions Financial Corp.’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferreds saw a positive trend.

Meanwhile, utilities name Southern California Edison, a subsidiary of Edison International, saw its 5.45% cumulative fixed-to-floating rate trust preferred securities also carried upward.

Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds also saw a boost.

Spire taps market

Spire priced a $250 million offering of $25-par series A cumulative redeemable perpetual preferred stock (Ba1/BBB) with a dividend of 5.9% on Tuesday.

There is no greenshoe.

The deal was announced Tuesday morning.

Morgan Stanley & Co. LLC, BofA Securities Inc. and Wells Fargo Securities, LLC are the joint bookrunners.

J.P. Morgan Securities LLC is the lead manager.

The preferreds are redeemable at par on or after Aug. 15, 2024. Prior to that, they are redeemable within 120 days after a ratings event at $25.50.

JPMorgan gains

In the secondary, JPMorgan Chase’s 6.125% series Y and 5.75% series DD non-cumulative preferred stock were both gaining.

The series Y preferreds (NYSE: JPMPrF) were up 7 cents to close at $25.59 on volume of about 298,000 shares.

The series DD preferreds (NYSE: JPMPrD) rose 10 cents to close at $26.23 on volume of about 213,000 shares.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities closed the session slightly lower.

The preferreds (NYSE: ALLYPrA) declined by 3 cents to close at $25.90 with about 286,000 shares trading.

Regions Financial’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferreds rode a positive trend.

The preferreds (NYSE: RFPrC) picked up 10 cents to close at $25.38 on volume of about 273,000 shares.

SoCal Edison rises

Meanwhile, Southern California Edison’s 5.45% cumulative fixed-to-floating rate trust preferred securities were carried upward.

The preferreds (NYSE: SCEPrK) added 4 cents to close at $23.30 with about 278,000 shares trading.

Duke Energy, another utility, saw its 5.75% series A cumulative redeemable perpetual preferreds improve.

The preferreds (NYSE: DUKPrA) gained 16 cents to close at $26.35 on volume of about 175,000 shares.

On Monday, the preferreds lost 5 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished the day up by 0.25%, expanding from a 0.02% gain in early Tuesday trading.

The iShares US Preferred Stock ETF was up 21 cents to $36.48.

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