Citizens prices $300 million preferreds; Dynagas, DCP Midstream gain; JPMorgan recovers

By Cristal Cody

Tupelo, Miss., Oct. 22 – The preferred stock market closed better on Monday with the Wells Fargo Hybrid and Preferred Securities index up 0.09%. The U.S. iShares Preferred Stock ETF also ended the day 0.80% better.

In primary market activity during the session, Citizens Financial Group, Inc. sold $300 million, or 300,000 shares, of fixed-to-floating rate noncumulative perpetual preferred stock (BB+/BB-) with a 6.375% dividend.

The issue has a fixed-rate dividend to but excluding April 6, 2024 and will carry a floating rate of Libor plus 315.7 basis points thereafter.

Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citizens Capital Markets, Inc and BofA Merrill Lynch were the bookrunners.

The Providence, R.I.-based banking and financial services company does not intend to list the preferreds on any exchange.

New issues improve

Elsewhere in new issue trading, Dynagas LNG Partners LP’s 8.75% series B fixed-to-floating rate perpetual preferreds closed up 3 cents, or 0.12%, to $24.70. The preferreds trade under the temporary symbol “DGAGF.”

The preferreds were quoted on Friday down 5 cents to $24.56 with about 253,000 shares traded.

Dynagas sold $55 million of the $25-par preferreds on Tuesday. The issue has an $8.25 million greenshoe.

DCP Midstream, LP’s $100 million of 7.95% series C fixed-to-floating rate cumulative redeemable perpetual preferred units (B1/B/BB-), which priced on Oct. 2 at par of $25.00, closed the day better.

The preferred units (NYSE: DCPPrC) rose 4 cents, or 0.19%, to $24.82 on an average trading volume of about 91,000 shares on Monday.

In other secondary trading on Monday, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock improved 33 cents, or 1.35%, to close at $24.83. The average trading volume was 2.41 million shares during the session.

The preferreds (NYSE: JPMPrD) were up 36 cents, or 1.46%, to $24.86 in midmorning trading.

JPMorgan’s 5.75% preferreds led secondary trading on Friday and closed the day down 51 cents to $24.50 with about 3 million shares traded.

JPMorgan sold $1.7 billion of the $25-par perpetual preferreds on Sept. 17.

© 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.