NiSource, Prospect Capital price; JPMorgan’s preferreds improve; Edison drops

By James McCandless

San Antonio, Nov. 28 – An active primary market was coupled with mixed trading in the secondary space in preferred stock action on Wednesday.

In the primary, NiSource Inc. priced an upsized $500 million of $25-par series B fixed-rate reset cumulative redeemable perpetual preferred stock with an initial dividend of 6.5%.

Prospect Capital Corp. priced $50 million of $25-par notes due June 15, 2029 at par with a coupon of 6.875%.

In the secondary, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock rose in the Wednesday session.

Elsewhere in financials, Bank of America Corp.’s 5.875% series HH non-cumulative preferreds were lower.

Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds were active but ended flat.

Meanwhile, in utilities, Southern California Edison Co., a subsidiary of Edison International saw its 5.375% cumulative fixed-to-floating rate trust preferreds decline.

Insurance name Hartford Financial Services Group, Inc.’s 6% series G non-cumulative preferreds rose.

NiSource prices

NiSource priced an upsized $500 million of $25-par series B fixed-rate reset cumulative redeemable perpetual preferred stock (Ba1/BBB-/BB+) with an initial dividend of 6.5%.

The deal, announced Wednesday morning, came in above the planned size of $200 million and matched talk for an initial dividend in the 6.5% area.

Wells Fargo Securities, LLC, Barclays, Goldman Sachs & Co. LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.

The preferreds are redeemable on March 15, 2024 and every five years subsequently at par.

Prospect Capital’s deal

Prospect Capital priced $50 million of $25-par notes due June 15, 2029 (BBB-//Kroll: BBB/Egan Jones: BBB) at par with a coupon of 6.875%.

The deal was announced on Wednesday morning.

There is a $7.5 million greenshoe.

RBC Capital Markets, LLC and UBS Securities LLC are the joint bookrunners.

Ladenburg Thalmann & Co. Inc., Oppenheimer & Co. Inc., BB&T Capital Markets, Citigroup Global Markets Inc. and William Blair & Co., LLC are the lead managers.

The notes are callable on or after Dec. 15, 2021 at par plus accrued interest.

JPMorgan improves

At the top of the secondary, JPMorgan’s 5.75% series DD non-cumulative preferred stock improved Wednesday.

The preferreds (NYSE: JPMPrD) added 16 cents to close at $24.77 on volume of about 569,000 shares.

On Tuesday, the preferreds fell 3 cents.

Elsewhere in the sector, Bank of America’s 5.875% series HH non-cumulative preferreds ended the session lower.

The preferreds (NYSE: BACPrK) were down 3 cents to close at $24.45 with about 438,000 shares trading.

Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds ended flat despite heavy trading.

The preferreds (NYSE: MSPrK) ended the session level at $24.75 on volume of about 336,000 shares.

On Tuesday, the preferreds rose 6 cents.

SoCal Edison down

Meanwhile, in the utilities space, Southern California Edison, a subsidiary of Edison International, saw its 5.375% cumulative fixed-to-floating rate trust preferreds trade lower.

The preferreds (NYSE: SCEPrJ) lost 28 cents to close at $21.85 with about 427,000 shares trading.

On Tuesday, the preferreds gained 17 cents.

The company is working to calm investor worries about potential losses from recent wildfires in California.

Hartford gains

Insurance provider Hartford’s 6% series G non-cumulative preferreds saw a boost in Wednesday’s session.

The preferreds (NYSE: HIGPrG) were up 22 cents to close at $25.41 on volume of about 271,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.09% at the end of trading, rising past the 0.05% gain at the start of Wednesday trading.

The iShares US Preferred Stock ETF was up 4 cents to $35.34.

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