JPMorgan issue frees to trade; National General launches; Capitala lists; Commerce busy

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.

A market source said the issue freed from the syndicate around 1:30 p.m. ET on Tuesday. Upon freeing, he said, the preferreds were quoted at $24.58 bid, $24.68 offered.

By the close, the issue had “gained back a few pennies” at $24.64 bid, $24.70 offered.

At mid-morning, 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 in size 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.

Overall, the preferred market ended the day strong, despite starting a little soft.

The Wells Fargo Hybrid and Preferred Securities index was up 14 basis points at the close. Around mid-morning, the index was off 7 bps.

Capitala notes list

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 early in the day, versus an opening level of $24.83.

The paper closed at par.

Commerce, Capital One active

In secondary trading, recent deals continued to be actively traded.

Commerce Bancshares Inc.’s $150 million of 6% series B noncumulative perpetual preferred stock – a deal that priced on Thursday – was busy, trading up 14 cents to $25.10. However, a source noted that the volume weighted average price of $24.96 might be more indicative of where the paper was really trading.

About 783,000 shares traded, the source said.

The issue began trading with a temporary symbol of “CHBBT” on Monday.

Meanwhile, Capital One Financial Corp.’s $500 million of 6.25% series C fixed-rate noncumulative perpetual preferreds (NYSE: COFPC) fell 7 cents to $24.38.

The issue priced June 9 and began trading on the NYSE on Monday.

Over 1.1 million shares were exchanged during Tuesday’s session.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.