Priority Income Fund preps offering; JPMorgan slightly worse; Qwest $25-par notes lower

By James McCandless

San Antonio, Feb. 19 – High volume traders in the preferred market closed mixed again as the broader market improved.

In the primary market, Priority Income Fund, Inc. plans to offer $25-par series C term preferred stock due 2024.

In the secondary, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock ended the session slightly worse off.

Elsewhere in finance, People’s United Financial, Inc.’s 5.625% series A fixed-to-floating rate non-cumulative perpetual preferred stock took the opposite track.

In telecom, Qwest Corp.’s 6.5% notes due 2056 and its 6.125% notes due 2053 sustained a decline from early trading.

Meanwhile, Southern California Edison, a subsidiary of Edison International, saw its 5.375% fixed-to-floating rate trust preferred securities jump higher.

Shipping name Tsakos Energy Navigation Ltd.’s 9.25% series E and 9.5% series F fixed-to-floating rate cumulative redeemable perpetual preferreds saw a boost.

Priority Income’s deal

Priority Income Fund plans to offer $25-par series C term preferred stock due 2024.

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.

Priority Income Fund plans to use the proceeds to acquire investments in accordance with its investment objectives and strategies and for general corporate purposes.

JPMorgan off

Leading in the secondary, JPMorgan’s 6% series EE non-cumulative preferred stock closed the day slightly worse.

The preferreds (NYSE: JPMPrC) were down 3 cents to close at $25.99 on volume of about 707,000 shares.

On Friday, the preferreds picked up 9 cents.

Elsewhere in the finance space, People’s United’s 5.625% series A fixed-to-floating rate non-cumulative perpetual preferred stock was better by the end of the session.

The preferreds (NYSE: PBCTP) gained 16 cents to close at $24.35 with about 190,000 shares trading.

Qwest lower

Meanwhile, in communications, Qwest’s 6.5% notes due 2056 and its 6.125% notes due 2053 were in decline throughout the trading day.

The 6.5% notes (NYSE: CTY) lost 10 cents to close at $23.24 on volume of about 514,000 notes.

On Friday, the notes jumped 34 cents.

The 6.125% notes (NYSE: CTBB) dropped 47 cents to close at $22.05 on volume of about 313,000 notes.

On Friday, the notes shaved off 12 cents.

SoCal Edison gains

Utilities name Southern California Edison’s 5.375% fixed-to-floating rate trust preferred securities saw a boost.

The preferreds (NYSE: SCEPrJ) jumped up 47 cents to close at $23.37 with about 507,000 shares trading.

Tsakos rises

In shipping, Tsakos’ 9.25% series E and 9.5% series F fixed-to-floating rate cumulative redeemable perpetual preferreds saw a boost in Tuesday’s session.

The series E preferreds (NYSE: TNPPrE) shot up $1.45 to close at $20.87 on volume of about 272,000 shares.

The series F preferreds (NYSE: TNPPrF) saw a $1.33 bump to close at $20.89 on volume of about 224,000 shares.

The company announced on Friday that it expects to garner up to $300 million in revenues from two new tanker contracts.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed the session up 0.12% after starting early trading higher by 0.03%.

The iShares US Preferred Stock ETF was up 3 cents to $36.18.

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