Morning Commentary: Preferreds trade off in early dealings; PennyMac gets temporary symbol

By Stephanie N. Rotondo

Seattle, June 29 – The preferred stock market was edging lower in early Thursday trading, following along with the broader equity markets.

The Wells Fargo Hybrid and Preferred Securities Index was off 16 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was down 13 bps.

PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferreds – a deal that priced Tuesday – were assigned a temporary ticker early in the day, according to a market source.

The symbol is “PNNMP.”

PennyMac’s new paper was trading at $24.90 at mid-morning, a gain of 20 cents.

The deal came at the tight end of the 8% to 8.125% price talk and was upsized from $75 million.

Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets ran the books.

The dividend rate will begin to float on June 15, 2024 at Libor plus 599 basis points. The paper also becomes redeemable on that date.

Meanwhile, Southern California Edison Co.’s SCE Trust VI’s $475 million of 5% series L trust preference securities listed on the New York Stock Exchange on Thursday under the ticker “SCEPrL.”

A trader saw that issue “around $24.92.”

The deal came to market on June 19, increased from $200 million and tighter than the 5.125% to 5.25% price talk.

J.P. Morgan Securities LLC, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities LLC were the bookrunners.

© 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.