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DynaGas preferreds trade; JPMorgan posts results; Capital Power preference shares top 9%
By Christine Van Dusen
Atlanta, July 14 – The new issue of preferred stock from Monaco-based DynaGas LNG Partners LP saw some activity on an otherwise quiet Tuesday, as investors digested the news that a nuclear deal had been reached with Iran.
Also on Tuesday morning, JPMorgan Chase & Co. reported stronger second-quarter profit, which was expected to inspire some issuance of preferreds but instead spawned 10-year notes, a trader said.
In its new deal, done on Monday, DynaGas LNG priced $75 million of 9% series A cumulative redeemable preferred units at par of $25 via Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) Inc., Stifel Nicolaus & Co. and DNB Markets.
Distributions will be made on the 12th day of February, May, August and November. On or after Aug. 12, 2020, the company can redeem the units at par plus accrued distributions.
Proceeds will be used with borrowings under a new secured debt facility to finance the purchase price of an optional vessel acquisition. Should that acquisition fail, the funds will be used for general partnership purposes, including working capital.
On Tuesday the new preferreds were seen trading at 24.65 offered, the trader said.
“With this deal coming on with Iran, I think the whole industry could be kind of sketchy and scary for investors, but they did 3 million shares, so we'll see how that goes,” he said.
Also on Tuesday, Yuma Energy Inc.'s 9.25% series A cumulative redeemable preferred stock was a significant gainer, trading up 99 cents at $18.10 on volume totaling 30,790 shares.
In other trading of preferreds, Capital Power Corp.'s cumulative rate reset convertible preference shares moved above the 9%-yield mark, a market source said, while Fairfax Financial Holdings Ltd.'s cumulative five-year rate reset preferred shares topped 6% in yield.
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