Morning Commentary: JPMorgan weak post-pricing; National General launches deal; Capitala lists

By Stephanie N. Rotondo

Phoenix, June 17 – New and recent deals continued to be the focus in the preferred stock market on Tuesday.

JPMorgan Chase & Co. priced $850 million of 6.3% series W noncumulative perpetual preferreds late Monday.

Come mid-morning on Tuesday, a trader saw the issue at $24.63 bid, $24.65 offered.

The deal was originally expected to be $400 million in a 6.375% to 6.5% area. Then the deal more than doubled and price talk was tightened.

Once that happened, markets started getting “whacked,” a market source told Prospect News on Monday.

J.P. Morgan Securities LLC ran the deal.

Meanwhile, National General Holdings Corp. announced plans to sell $100 million series A noncumulative preferreds.

Price talk is 7.5% to 7.625%, according to a market source.

A trader said he had not yet seen any gray markets for the paper.

Morgan Stanley & Co. LLC and UBS Securities LLC are the bookrunners.

In new listings, Capitala Finance Corp.’s $100 million of 7.125% $25-par notes due 2021 began trading on the New York Stock Exchange on Tuesday.

The deal priced June 12. The ticker symbol is “CLA.”

A trader quoted the notes at $24.85 bid, $24.90 offered. According to the NYSE, the notes were trading at $24.90, versus an opening level of $24.83.

The preferred market was coming in in early Tuesday trading, according to the Wells Fargo Hybrid and Preferred Securities index.

The index was off 7 basis points as of mid-morning.

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