Algonquin Power taps market; JPMorgan ends lower; U.S. Bancorp falls

By James McCandless

San Antonio, Oct. 10 – Preferred stocks followed the lead of common stocks, moving lower in Wednesday trading.

In primary news, Algonquin Power & Utilities Corp. priced $250 million of $25-par 6.875% series 2018-A fixed-to-floating rate subordinated notes due Oct. 17, 2078 (BB+/BB+).

In trading, JPMorgan Chase & Co.’s recent issue of 5.75% series DD non-cumulative preferred stock led the market lower.

Elsewhere in the financial sector, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock also declined.

Goldman Sachs Group, Inc.’s 5.5% series J fixed-to-floating rate perpetual non-cumulative preferred stock also dropped.

Meanwhile, insurance provider MetLife, Inc.’s 5.625% series E non-cumulative preferred stock was another name trading down.

However DCP Midstream, LP’s new $100 million 7.95% series C fixed-to-floating rate cumulative redeemable perpetual preferred units rose, going against the day’s trend.

Algonquin offers $25-par notes

Algonquin Power priced $250 million of $25-par series 2018-A fixed-to-floating rate subordinated notes due Oct. 17, 2078 (BB+/BB+) with an initial coupon of 6.875%.

There is a $37.5 million greenshoe.

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

The notes are redeemable on or after Oct. 17. 2023 at par.

JPMorgan leads market down

Leading the secondary again, JPMorgan’s recent issue of 5.75% series DD non-cumulative preferred stock moved lower after two days of remaining level.

The preferreds (NYSE: JPMPrD) were down 11 cents to close at $24.89 on volume of about 960,000 shares.

The preferreds held steady at $25.00 on Tuesday and Monday.

Elsewhere in the financial space, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock also traded lower.

The preferreds (USBPrP) were down 16 cents to close at $24.12 with about 385,000 shares trading.

Goldman Sachs’ 5.5% series J fixed-to-floating rate perpetual non-cumulative preferred stock declined.

The preferreds (NYSE: GSPrJ) were down 15 cents to close at $25.05 on volume of about 381,000 shares.

In the insurance sector, MetLife’s 5.625% series E non-cumulative preferred stock dropped.

The preferreds (NYSE: METPrE) were down 19 cents to close at $24.43 with about 208,000 shares trading.

DCP Midstream gains

Against the negative trend Wednesday, DCP Midstream’s recent $100 million 7.95% series C fixed-to-floating rate cumulative redeemable perpetual preferred units improved.

The preferreds (NYSE: DCPPrC) were up 18 cents to close at $24.60 on volume of about 144,000 shares.

The deal priced on Oct. 2.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.38%, increasing a 0.20% decline at the opening of the session Wednesday.

The iShares US Preferred Stock ETF was down 28 cents to $35.94.

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