JPMorgan deal upsized, talk tightened; Capital One lists; Commerce gets temporary symbol

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 as much as $850 million of series W noncumulative preferred stock.

Price talk on the fixed-rate preferreds was also revised to 6.3% from initial talk of 6.375% to 6.5%.

The offering was initially expected to be least $400 million.

A trader said he saw an early gray market quote of $24.75 bid, $24.90 offered for the paper.

“It’s been doing fine,” he said of the deal.

However, once the size more than doubled and talk was tightened, “the gray market got whacked a lot,” said another market source after the close.

Still, he said the deal was the day’s “big thing.”

He pegged the issue at $24.70 bid, $24.75 offered.

The issue was said to have priced after the bell, but no details had emerged as of 7 p.m. ET.

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.

As for the New York-based financial institution’s other preferred issues, the series B securities (NYSE: JPMPB) closed down 11 cents at $25.64.

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. The shares hit a low of $24.35 during the session and closed at $24.45.

Among other recent deals, 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. Another source said the paper finished at $24.96.

Also, Colony Financial Inc. announced that its $11.25 million greenshoe had been exercised in full, bringing its recent issuance of series B cumulative redeemable preferreds to $86.25 million.

Early in the session, the preferreds were seen at $24.95 bid. Later in the day, the preferreds were quoted at $24.90 bid, par offered.

That deal priced Thursday as well.

Overall, the preferred market was initially moving into positive territory as the week kicked off. However, things turned negative shortly after mid-morning.

The Wells Fargo Hybrid and Preferred Securities index was up 11 basis points as of mid-morning. It ended the day down 1 bp.

As for volume, a market source said trading was “active in a handful of issues, but other than that, it was pretty limited.”

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