Brookfield Property prices preferreds; Pacific Ventures makes best-efforts offering; JPMorgan improves

By James McCandless

San Antonio, March 14 – Top preferred stock traders were mixed on Thursday in the backdrop of a bubbling primary space.

Brookfield Property Partners LP priced $160 million of $25-par series I class A cumulative redeemable perpetual preferred units with a dividend of 6.5%.

Also, Pacific Ventures Group, Inc. set terms for a best-efforts offering of $10 million $25-par series G cumulative redeemable perpetual preferred stock with a dividend of 11%.

In the secondary space, JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferred stock both improved.

Elsewhere in finance, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities fell.

BB&T Corp.’s 5.2% series G non-cumulative perpetual preferreds were also falling.

Elsewhere, real estate investment trust Digital Realty Trust, Inc.’s 5.85% cumulative redeemable preferred stock closed slightly higher.

Triton International Ltd.’s new 8.5% series A cumulative redeemable perpetual preference shares followed the positive trend.

Brookfield’s deal

Brookfield Property Partners priced $160 million of $25-par series I class A cumulative redeemable perpetual preferred units (BB+) with a dividend of 6.5%.

There is a $24 million greenshoe.

The deal was announced Thursday morning.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets, LLC are the bookrunners.

The preferreds are redeemable on or after March 31, 2024. Prior to that, they are redeemable within 60 days after a change in tax law or change-of-control triggering event, within 90 days of a delisting Brookfield transaction triggering event, or within 120 days after a ratings event.

Pacific Venture’s offering

Pacific Venture set terms for a best-efforts offering of $10 million $25-par series G cumulative redeemable perpetual preferred stock with a dividend of 11%.

A placement agent has not been retained yet and there is no underwriter.

The preferreds are redeemable after two years. Prior to that, they are redeemable within 120 days after a change-of-control event.

JPMorgan improves

Leading in the secondary, JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferred stock were both improving in Thursday’s session.

The series DD preferreds (NYSE: JPMPrD) were up 4 cents to close at $26.29 on volume of about 644,000 shares.

The series EE preferreds (NYSE: JPMPrC) were up 5 cents to close at $26.59 on volume of about 192,000 shares.

Elsewhere in the finance space, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities were seen falling.

The preferreds (NYSE: CPrN) dropped 6 cents to close at $26.61 with about 240,000 shares trading.

On Wednesday, the preferreds fell 2 cents.

BB&T’s 5.2% series G non-cumulative perpetual preferreds were also negative.

The preferreds (NYSE: BBTPrG) shaved off 11 cents to close at $24.87 on volume of about 227,000 shares.

Digital Realty gains

Real estate investment trust Digital Realty’s 5.85% cumulative redeemable preferred stock closed Thursday slightly higher.

The preferreds, trading under the temporary symbol “DLRPO,” added 2 cents to close at $24.92 with about 257,000 shares trading.

On Wednesday, the preferreds picked up 7 cents.

Triton rises

Meanwhile, Triton’s new 8.5% series A cumulative redeemable perpetual preference shares followed the positive trend.

The preferreds, trading under the temporary symbol “TPNRF,” were up 3 cents to close at $24.93 on volume of about 184,000 shares.

On its first day of trading Wednesday, the preferreds closed under par at $24.90.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.11% by the end of Thursday’s session, pushing higher after starting the day gaining 0.06%.

The iShares US Preferred Stock ETF was up 2 cents to $36.57.

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