Priority Income plans offering; JPMorgan’s 5.75% preferreds weaken; Dynagas ends lower

By James McCandless

San Antonio, Oct. 18 – A downturn in the equity markets led to mixed trading in the preferred space on Thursday.

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

In other financial trading, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock and Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferreds improved.

Elsewhere, Dynagas LNG Partners LP’s new $55 million 8.75% series B fixed-to-floating rate cumulative redeemable perpetual preferred units traded lower.

Meanwhile, Energy Transfer Partners, LP’s 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units slid.

In the primary market, Priority Income Fund, Inc. said it plans to price a $25 million offering of $25-par series B term preferred stock due 2023.

Priority Income’s deal

Priority Income Fund’s deal was announced Thursday morning.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, B. Riley FBR, Inc. and Incapital LLC are the joint bookrunners. Maxim Group LLC is the co-manager.

The preferreds are redeemable after two years.

JPMorgan loses

JPMorgan’s recent 5.75% series DD non-cumulative preferred stock ended lower after the Thursday session, leading secondary activity.

The preferreds (NYSE: JPMPrD) were down 1 cent to close at $25.01 on volume of about 745,000 shares.

On Wednesday, the preferreds lost 4 cents.

Elsewhere in the financial space, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferreds improved.

The preferreds (NYSE: USBPrP) were up 3 cents to close at $24.24 with about 324,000 shares trading.

Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferreds also moved higher.

The preferreds (NYSE: ALLYPrA) were up 2 cents to close at $25.93 on volume of about 320,000 shares.

On Wednesday, S&P Global Ratings revised its outlook on the company from stable to positive.

Dynagas lower

Dynagas’ new $55 million 8.75% series B fixed-to-floating rate cumulative redeemable perpetual preferred units continued to weaken.

The preferreds, trading under the temporary symbol “DGAGF,” were down 3 cents to close at $24.62 with about 489,000 shares trading.

On Wednesday, the preferreds ended their first day of trading below par at $24.65.

The deal priced on Tuesday.

Energy Transfer falls

Meanwhile, Energy Transfer’s 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units declined.

The preferreds (NYSE: ETPPrD) were down 18 cents to close at $25.65 on volume of about 237,000 shares.

On Thursday, the company’s common unitholders approved a merger with Energy Transfer Equity, LP.

On Aug. 2, the two companies announced the merger as a transaction to simplify their corporate structure.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.17% at the end of trading, bouncing back from a 0.07% decline at Thursday’s open.

The iShares US Preferred Stock ETF was up 8 cents to $36.08.

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