GM Financial taps market; Chimera’s new issue moves lower; Seaspan improves

By James McCandless

San Antonio, Sept. 17 – The preferred market began the week with new supply from the financial sector while secondary trading focused on recent new issues.

General Motors Financial Co., Inc. priced a $500 million offering of $1,000-par 6.5% series B fixed-to-floating rate cumulative perpetual preferred stock (//BB+).

JPMorgan Chase & Co. announced plans to sell $25-par non-cumulative preferred stock.

In the secondary market, Chimera Investment Corp.’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock declined.

Seaspan Corp.’s new $150 million of 8% series I fixed-to-floating rate cumulative redeemable perpetual preferred shares gained.

AllianzGI Convertible & Income Fund II’s new $109 million of 5.5% series A cumulative preferred shares were flat but actively traded.

GM Financial prices

General Motors Financial priced a $500 million offering of $1,000-par series B fixed-to-floating rate cumulative perpetual preferred stock (//BB+) with an initial dividend of 6.5%.

There is no greenshoe.

The deal was announced Monday morning, matching size talk of $500 million and coming in below initial talk for an initial dividend of 6.625% to 6.75%.

BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.

JPMorgan Chase on tap

JPMorgan Chase announced plans to price an offering of $25-par series DD non-cumulative preferred stock, according to filings with the Securities and Exchange Commission.

JPMorgan is the bookrunner.

BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley, RBC Capital Markets, UBS Securities LLC and Wells Fargo are the lead managers.

The preferreds are redeemable on or after a certain period. Prior to that, they are redeemable within 90 days of a capital treatment event.

The company said it intends to list the preferreds on the New York Stock Exchange under the symbol “JPMPrD.”

Chimera loses

Meanwhile, Chimera’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock continued to trade lower.

The preferreds, trading under the temporary symbol “CIMPP,” were down 4 cents to close at $24.81 on volume of about 799,000 shares.

On Friday, the preferreds ended below par at $24.85.

The deal priced on Sept. 13.

Seaspan gains

Seaspan’s new $150 million of series I fixed-to-floating rate cumulative redeemable perpetual preferreds improved on Monday.

The preferreds, trading under the temporary symbol “SSWPP,” were up 8 cents to close at $24.88 with about 765,000 shares trading.

On Friday, the preferreds rose 5 cents.

The deal priced on Sept. 12.

AllianzGI fund flat

AllianzGI Convertible & Income Fund II’s recent $109 million of 5.5% series A cumulative preferreds were flat despite increased trading activity.

The preferreds, trading under the temporary symbol “NCZIP,” were level at $24.75 on volume of about 613,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.18% at market close, adding to a 0.14% drop in early trading on Monday.

The iShares US Preferred Stock ETF was down 9 cents to $37.25.

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