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Morning Commentary: JPMorgan to price $25-par noncumulatives; Capital One lists on NYSE
By Stephanie N. Rotondo
Phoenix, June 16 – New deals continued to enter the preferred stock market as the week got off to a fresh start.
JPMorgan Chase & Co. announced plans to sell at least $400 million of series W noncumulative preferred stock.
The preferreds will be fixed for life, with price talk in a 6.375% to 6.5% area, according to a market source.
A trader said he was seeing a gray market quote of $24.75 bid, $24.90 offered for the paper.
“It’s been doing fine,” he said of the deal.
J.P. Morgan Securities LLC is the bookrunner. BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint lead managers.
Meanwhile, Capital One Financial Corp.’s $500 million of 6.25% series C fixed-rate noncumulative perpetual preferreds began trading on the New York Stock Exchange.
The deal came June 9. The ticker symbol is “COFPC.”
At mid-morning, the issue was trading at $25.50, versus opening levels of $24.60.
Commerce Bancshares Inc.’s $150 million of 6% series B noncumulative perpetual preferred stock – a deal that priced on Thursday – was assigned a temporary trading symbol of “CHBBT,” according to a trader.
The trader saw the issue trade at $24.80 early in the session.
In other recent deals, Colony Financial Inc.’s $75 million of series B cumulative redeemable preferred stock were seen at $24.95 bid.
That deal priced Thursday as well.
Overall, the preferred market was moving into positive territory as the week kicked off.
The Wells Fargo Hybrid and Preferred Securities index was up 11 basis points as of mid-morning.
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