DCP Midstream, THL Credit tap $25-par market; JPMorgan rises; Citigroup moves lower

By James McCandless

San Antonio, Oct. 2 – The preferred space saw two new issues in the primary market while the secondary trended negative again.

DCP Midstream, LP priced a $100 million offering of 7.95% $25-par series C fixed-to-floating rate cumulative redeemable perpetual preferred units (B1/B/BB-).

THL Credit Inc. sold $50 million of 6.125% $25-par notes due Oct. 30, 2023.

In the secondary, JPMorgan Chase & Co.’s recent $1,696,250,000 issue of $25-par 5.75% series DD non-cumulative preferred stock rose.

Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities moved lower.

The PNC Financial Services Group, Inc.’s 6.125% series P fixed-to-floating rate non-cumulative perpetual preferred stock gained.

DCP prices

DCP Midstream priced a $100 million offering of $25-par series C fixed-to-floating rate cumulative redeemable perpetual preferred units (B1/B/BB-) with an initial dividend of 7.95%.

There is a $15 million greenshoe.

RBC Capital Markets, LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable on or after Oct. 15, 2023 at par. Prior to that, they are redeemable within 120 days of a change-of-control triggering event.

In the secondary market, DCP Midstream’s existing 7.875% series B fixed-to-floating rate perpetual preferreds (NYSE: DCPPrB) lost 19 cents to close at $24.99 on volume of about 416,000 shares.

THL taps market

THL Credit priced $50 million of 6.125% $25-par notes due Oct. 30, 2023.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

Janney Montgomery Scott LLC, B. Riley FBR, Inc., BB&T Capital Markets, D.A. Davidson & Co., Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC are the lead managers.

The underwriters have a 30-day $7.5 million greenshoe.

The notes are redeemable after three years.

JPMorgan loses

Elsewhere in the secondary space, JPMorgan’s 5.75% series DD non-cumulative preferred stock improved.

The preferreds (NYSE: JPMPrD) were up 2 cents to close at $25.18 with about 705,000 shares trading.

On Monday, the preferreds lost 15 cents.

Citigroup off

Also in the financial sector, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities declined.

The preferreds (NYSE: CPrN) were down 2 cents to close at $26.83 on volume of about 345,000 shares.

PNC rises

Meanwhile, PNC’s 6.125% series P fixed-to-floating rate non-cumulative perpetual preferred stock rose.

The preferreds (NYSE: PNCPrP) were up 4 cents to close at $26.73 with about 303,000 shares trading.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.13% at market close, reversing a 0.07% gain in early trading Tuesday.

The iShares US Preferred Stock ETF was off 10 cents to $36.58.

© 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.