Cherry Hill Mortgage prices preferreds; JPMorgan rises; AmTrust preferreds improve

By James McCandless

San Antonio, Feb. 4 – The preferred space ended Monday slightly positive as the primary space saw a new deal.

Cherry Hill Mortgage Investment Corp. priced $45 million of $25-par series B fixed-to-floating rate cumulative redeemable perpetual preferred stock at par with an initial dividend of 8.25%.

In the secondary, JPMorgan Chase & Co.’s recent 6% series EE non-cumulative preferred stock rose.

Elsewhere in finance, Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds took a negative turn.

In insurance, AmTrust Financial Services, Inc.’s 7.75% series E and 7.5% series D non-cumulative preferred shares were better.

Utilities name Southern California Edison, a subsidiary of Edison International, saw its 5% trust preferred securities drop.

Real estate investment trust American Homes 4 Rent’s 6.5% series D cumulative redeemable perpetual preferred shares were also moving lower.

Cherry Hill prices

Cherry Hill priced $45 million of $25-par series B fixed-to-floating rate cumulative redeemable perpetual preferred stock at par with an initial dividend of 8.25%.

There is a $6.75 million greenshoe.

The offering was announced Monday morning.

Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the joint bookrunners.

Citigroup Global Markets Inc. is the lead manager.

The dividend is fixed until April 15, 2024, then converts to a floating rate of Libor plus a 563.1 basis points.

The preferreds are redeemable on or after April 15, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event or where it is necessary to preserve its qualification as a real estate investment trust for U.S. federal income tax purposes.

JPMorgan rises

Meanwhile, leading trading volume in the secondary space, JPMorgan’s recent 6% series EE non-cumulative preferred stock ended the session better.

The preferreds (NYSE: JPMPrC) were up 6 cents to close at $25.67 on volume of about 681,000 shares.

On Friday, the preferreds gained 4 cents.

Elsewhere in the finance space, Goldman Sachs’ series D floating-rate non-cumulative preferreds went the opposite direction.

The preferreds (NYSE: GSPrD) lost 25 cents to close at $18.65 with about 388,000 shares trading.

On Friday, the preferreds saw a 25 cents boost.

AmTrust better

In the insurance sector, AmTrust’s 7.75% series E and 7.5% series D non-cumulative preferred stock were better at the Monday close.

The 7.75% preferreds (NYSE: AFSIPrE) picked up 5 cents to close at $9.20 on volume of about 620,000 shares.

The 7.5% preferreds (NYSE: AFSIPrD) jumped up 50 cents to close at $9.30 on volume of about 511,000 shares.

SoCal Edison drops

Electric utility Southern California Edison’s 5% trust preferred securities took a fall in the day’s activity.

The preferreds (NYSE: SCEPrL) dropped 37 cents to close at $18.48 with about 505,000 shares trading.

American Homes lower

Real estate investment trust American Homes 4 Rent’s 6.5% series D cumulative redeemable perpetual preferred shares were also headed lower.

The preferreds (NYSE: AMHPrD) were down 22 cents to close at $23.98 on volume of about 460,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.05% at the end of the Monday session, moving up after starting down 0.03%.

The iShares US Preferred Stock ETF was up 1 cent to $35.86.

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