American Express sells $1,000-par issue at 4.9%; JPMorgan rises above par; Breitburn firms

By Stephanie N. Rotondo

Phoenix, Feb. 25 – It was another firm day for the preferred stock market on Wednesday, though the space settled in a little from its highs.

The Wells Fargo Hybrid and Preferred Securities index ended up 8 basis points. The index was up 13 bps at mid-morning.

The day also brought a new issue from American Express Co., as the New York-based company sold $850 million of 4.9% $1,000-par series C fixed-to-floating rate noncumulative preferreds.

Initial price talk was 5.25%. The dividend begins floating March 15, 2020 at Libor plus 328.5 bps.

“It should clean up pretty well,” a trader said ahead of pricing.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and Wells Fargo Securities LLC are running the books.

Meanwhile, JPMorgan Chase & Co.’s $1.38 billion of 6.125% series Y noncumulative preferreds (NYSE: JPMPF) were “finally trading above par,” a trader said.

He saw the issue trading at $25.05 early in the session.

The paper closed at $25.07, up 8 cents day over day.

The deal priced Feb. 5.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) jumped 45 cents, or 1.96%, to $23.45 on Wednesday, as oil prices jumped on rising demand expectations.

Additionally, the Los Angeles-based oil and gas company announced a monthly distribution for April 15.

Holders of the units will receive 17.1875 cents per unit.

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