CenterPoint prices new preferreds; Oaktree flat; U.S. Bancorp’s preferreds improve

By James McCandless

San Antonio, Aug. 15 – The preferred primary space saw a bump of activity as secondary trading remained fixed on newer issues.

CenterPoint Energy, Inc. sold an upsized $800 million of $1,000-par series A fixed-to-floating rate cumulative redeemable perpetual preferred stock.

In secondary trading, Oaktree Capital Group, LLC’s 6.55% series B preferred units were a volume leader but ultimately traded unchanged.

U.S. Bancorp’s new $575 million of 5.5% series K non-cumulative perpetual preferred stock rose.

Barclays plc’s 8.125% series 5 non-cumulative callable dollar preference shares continued to improve.

CenterPoint prices

CenterPoint priced an upsized $800 million of $1,000-par series A fixed-to-floating rate cumulative redeemable perpetual preferred stock (Baa1/BBB/BB+) on Wednesday with an initial dividend of 6.125%.

The offering was announced Tuesday and upsized from an expected $500 million.

There is no greenshoe.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.

Oaktree level

Meanwhile, Oaktree’s recent $235 million of 6.55% series B preferred units were level.

The preferreds (NYSE: OAKPrB) were fixed at $24.97 on volume of about 168,000 shares.

On Tuesday, the preferreds gained 12 cents.

U.S. Bancorp up

U.S. Bancorp’s new $575 million of 5.5% series K non-cumulative perpetual preferred stock added to recent gains.

The preferreds, trading under the temporary symbol “USBLL,” were up 2 cents to close at $25.13 with about 163,000 shares trading.

On Tuesday, the preferreds rose 5 cents.

The deal priced on Aug. 7.

Barclays gains

Barclays’ 8.125% series 5 non-cumulative callable dollar preference shares continued a positive trend.

The preferreds (NYSE: BCSPrD) were up 13 cents to close at $26.49 on volume of about 159,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.16% at market close, rising past the 0.03% increase in early trading on Wednesday.

The iShares US Preferred Stock ETF was down 2 cents to $37.38. The ETF gained 8 cents on Tuesday.

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