International Shipholding plans deal; JPMorgan, Synovus free to trade; Wells Fargo lists

By Stephanie N. Rotondo

Phoenix, July 23 - Preferred stocks were firming again on Tuesday, and the primary market continued to show signs of life.

One market source said the market was up about 4 cents on average for $25-par issues, though volume was "toward the light side."

International Shipholding Corp. said during the day's session that it was offering $100-par series B cumulative redeemable perpetual preferreds. However, a trader said he had not seen any markets for paper as of midday.

"It's cheap," another source said of the deal, noting the "lack of ratings and the industry."

Meanwhile, JPMorgan Chase & Co. priced a $1.5 billion sale of 6% $1,000-par series R fixed-to-floating rate noncumulative perpetual preferreds late Monday. Come Tuesday, a trader said he saw a block of shares offered at 102.5.

However, at the close, the issue was quoted at par bid, par ¼ offered.

Synovus Financial Corp. also brought a deal late Monday, a $130 million sale of 7.875% series C fixed-to-floating rate noncumulative perpetual preferreds.

The trader saw that issue at $25.50 at midday on Tuesday. At the close, a source pegged the shares at $25.65 bid.

"It's not a common name and it's cheaply priced," the source said of the deal's good showing. "Since the May/June scare, underwritings are being done a little more carefully."

He added that the preferreds saw a "slow and steady climb" throughout the day, "which is a sign of a well underwritten deal."

Both the JPMorgan and Synovus issues freed to trade.

Among other recent deals, Wells Fargo & Co.'s $1.5 billion of 5.85% series Q class A fixed-to-floating rate noncumulative perpetual preferreds were admitted to the New York Stock Exchange, as was expected.

The ticker symbol is "WFCPQ." Paper was trading at $25.13, down 12 cents from the day before.

The deal priced July 15.

In the secondary market, General Electric Capital Corp.'s 6.5% GE Capital InterNotes due 2048 (NYSE: GEPA) were off 45 cents, or 1.74%, at $25.48 as of midafternoon trading. The notes closed out the day down 36 cents, or 1.39%, at $25.57.

The company called the issue late Monday.

The notes will be redeemed on Aug. 22 at a redemption price of $25 plus 31.5972 cents.

© 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.