Morning Commentary: Preferreds look to rally; Morgan Stanley eyed; Just Energy on tap

By Stephanie N. Rotondo

Seattle, Jan. 26 – After losing ground in the previous session, preferred stocks were rebounding early Thursday.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at mid-morning.

Morgan Stanley & Co. Inc.’s $1 billion of 5.85% series K fixed-to-floating rate noncumulative preferreds – a benchmark deal priced Tuesday – continued to be eyed, with a trader seeing the issue trading “around $25.30.”

The 6.375% series I fixed-to-floating rate noncumulative preferreds (NYSE: MSPrI) were meantime steady at $26.29.

Price talk on the new deal was initially at 6.125% but was soon revised to 5.875%.

Morgan Stanley & Co. LLC was the bookrunner.

The dividend will be fixed until April 15, 2027, at which point it will be based on Libor plus 349.1 bps.

Meanwhile, a trader noted that Just Energy Group Inc. was entering the market. In a press release out Thursday, the Toronto-based energy provider said it was selling series A fixed-to-floating rate cumulative redeemable preferred stock in the United States.

The trader said he had not yet heard any price talk on the new issue.

In addition to the public offering, Just Energy is also planning to sell up to $10 million of the new series of preferreds to company insiders via a non-brokered private placement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.