Morning Commentary: NiSource, Prospect Capital on tap; Deutsche Bank lower; Qwest up

By James McCandless

San Antonio, Nov. 28 – The preferred market started the Wednesday session with light trading volume and a growing primary calendar as the Wells Fargo Hybrid & Preferred Securities Financial index rose by 0.05%.

NiSource Inc. plans to sell $200 million of $25-par series B fixed-rate reset cumulative redeemable perpetual preferred stock with an initial dividend in the 6.5% area.

Wells Fargo Securities, LLC, Barclays, Goldman Sachs & Co. LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.

The preferreds are redeemable on March 15, 2024 or any fifth anniversary after the first call date at par. Prior to that, they are redeemable within 120 days after a ratings event at $25.50.

Prospect Capital Corp. plans to price an offering of $25-par notes due 2029.

RBC Capital Markets, LLC and UBS Securities LLC are the joint bookrunners.

Ladenburg Thalmann & Co. Inc., Oppenheimer & Co. Inc., BB&T Capital Markets, Citigroup Global Markets Inc. and William Blair & Co., LLC are the lead managers.

The notes are callable on or after Dec. 15, 2021 at par plus accrued interest.

In the secondary, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were lower at the start of the session.

The preferreds (NYSE: DKT) were down 3 cents to $25.29 on volume of about 53,000 shares.

News broke on Tuesday that the company is expected to fire senior level executives after a string of negative headlines and poor performance.

Elsewhere in finance, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds were flat in early activity.

The preferreds (NYSE: MSPrK) were level at $24.75 with about 47,000 shares trading.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock moved lower.

The preferreds (NYSE: JPMPrD) were off 1 cent to $24.60 on volume of about 41,000 shares.

Elsewhere, integrated communications name Qwest Corp.’s 6.5% notes due 2056 were gaining.

The notes (NYSE: CTBB) were up 12 cents to $21.90 with about 48,000 notes trading.

AT&T Inc.’s 5.35% global notes due 2066 were also rising in the communications space.

The notes (NYSE: TBB) traded up 8 cents to $22.91 on volume of about 34,000 notes.

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