Associated Banc taps market; JPMorgan’s new preferreds edge higher; Chimera dips

By James McCandless

San Antonio, Sept. 19 – The preferred market renewed its focus on new issues in Wednesday trading.

Associated Banc-Corp priced $100 million of $25-par 5.875% series E non-cumulative perpetual preferred stock.

In secondary trading, JPMorgan Chase & Co.’s new $1,475,000,000 issue of $25-par 5.75% series DD non-cumulative preferred stock gained.

Chimera Investment Corp.’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock declined.

Ladenburg Thalmann Financial Services Inc.’s 8% series A cumulative redeemable preferred stock plummeted.

Associated Banc-Corp prices

Associated Banc-Corp priced $100 million of $25-par series E non-cumulative perpetual preferred stock (Baa3/BB) on Wednesday at par with a dividend 5.875%.

There is no greenshoe.

BofA Merrill Lynch and UBS Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after Dec. 15, 2023 at par. Prior to that, they are redeemable within 90 days of a regulatory capital treatment event.

JPMorgan rises

JPMorgan’s new $1,475,000,000 issue of $25-par series DD 5.75% non-cumulative preferred stock edged higher after pricing on Monday.

There is a $221.25 million greenshoe.

J.P. Morgan Securities LLC is the bookrunner.

BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities and Wells Fargo Securities, LLC are the lead managers.

The preferreds are redeemable on or after Dec. 1, 2023 at par. Prior to that, they are redeemable within 90 days of a capital treatment event.

The preferreds, trading under the temporary symbol “JPMLL,” rose 2 cents to close at $25.04 on volume of about 4.9 million shares.

Chimera edges lower

Elsewhere, Chimera’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock edged lower.

The preferreds, trading under the temporary symbol “CIMPP,” were down 2 cents to close at $24.89 with about 769,000 shares trading.

On Tuesday, the preferreds rose 10 cents.

The deal priced on Sept. 13.

Ladenburg Thalmann drops

Meanwhile, Ladenburg Thalmann’s 8% series A cumulative redeemable preferred stock plummeted in Wednesday trading.

Recently, the Securities and Exchange Commission filed a lawsuit against chairman Phillip Frost, alleging his role in a “pump-and-dump” penny stock scheme that garnered more than $27 million in unlawful stock sales.

The preferreds (NYSE: LTSPrA) were down 63 cents to close at $23.64 on volume of about 482,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.29% at market close, extending a 0.11% decline in early trading on Wednesday.

The iShares US Preferred Stock ETF was down 13 cents to $37.08.

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