Ford Motor taps $25-par market; JPMorgan preferreds lower; Teekay Offshore weakens

By James McCandless

San Antonio, May 20 – The first trading day in a new week for the preferred market was marked by widespread weakness.

In secondary activity, JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferred stock moved lower.

Elsewhere in finance, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were better.

Utilities name Spire Inc.’s recent 5.9% series A cumulative redeemable perpetual preferreds followed the negative trend.

Meanwhile, shipping name Teekay Offshore Partners LP’s 8.875% series E fixed-to-floating rate cumulative redeemable perpetual preferred units and its 7.25% series A cumulative redeemable preferred units both took a dive.

Insurance provider Allstate Corp.’s 5.1% fixed-to-floating rate subordinated debentures due 2053 were also under water.

Ford prices

In the primary market, Ford Motor Co. priced $750 million of $25-par notes due June 1, 2059 at par with a coupon of 6.2% on Monday.

There is no greenshoe.

The deal was announced Monday morning.

BofA Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead managers.

The notes are redeemable on or after June 1, 2024 at par.

JPMorgan lower

Featuring prominently in the secondary, JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferred stock were both pushed lower.

The series DD preferreds (NYSE: JPMPrD) were down 1 cent to close at $26.23 on volume of about 960,000 shares.

The series EE preferreds (NYSE: JPMPrC) were off 11 cents to close at $26.32 on volume of about 217,000 shares.

On Friday, the preferreds slipped 5 cents.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended better, going against the day’s trend.

The preferreds (NYSE: ALLYPrA) picked up 8 cents to close at $25.80 with about 154,000 shares trading.

On Friday, the preferreds were down 11 cents.

Spire off

In the utilities space, Spire’s recent 5.9% series A cumulative redeemable perpetual preferreds followed the overall negative trend.

The preferreds, trading under the temporary symbol “SIPRY,” lost 9 cents to close at $25.61 on volume of about 637,000 shares.

On Friday, the preferreds were level.

Teekay dives

Meanwhile, shipping name Teekay Offshore’s 8.875% series E fixed-to-floating rate cumulative redeemable perpetual preferred units and its 7.25% series A cumulative redeemable preferred units spent the session diving.

The series E preferreds (NYSE: TOOPrE) dropped $2.89 to close at $15.71 with about 383,000 shares trading.

The series A preferreds (NYSE: TOOPrA) fell $1.78 to close at $15.63 with about 323,000 shares trading.

The company announced Monday morning that it had received an acquisition offer from Brookfield Consortium for $1.05 in cash per common unit that it does not already own.

Allstate off

Insurance provider Allstate’s 5.1% fixed-to-floating rate subordinated debentures due 2053 also spent the session under water.

The preferreds (NYSE: ALLPrB) declined by 30 cents to close at $24.98 on volume of about 135,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.39% at the close, extending a 0.05% drop in early Monday trading.

The iShares US Preferred Stock ETF fell 13 cents to $36.39.

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