First Internet sells $25-par notes; Gabelli Dividend preferreds top par; NiSource lower

By James McCandless

San Antonio, June 5 – Top traders in the preferred space trended downward despite a positive swing in the broader market.

In primary activity, First Internet Bancorp priced an upsized $35 million of fixed-to-floating rate subordinated notes due 2029 at par with an initial coupon at 6%.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The notes are redeemable on or after June 30, 2024. Prior to that, they are redeemable after a regulatory capital treatment event.

The coupon is fixed until June 30, 2024, then converts to a floating rate of Libor plus 411.4 basis points.

Leading secondary trading volume, Gabelli Dividend & Income Trust’s new $50 million 5.375% series H cumulative preferred stock closed its first day above par.

The preferreds, trading under the temporary symbol “GDVVP,” were seen closing at $25.12 on volume of about 532,000 shares.

Meanwhile, in utilities, NiSource, Inc.’s 6.5% series B fixed-rate reset cumulative redeemable perpetual preferred stock closed lower.

The preferreds (NYSE: NIPrB) were down 9 cents to end at $26.60 with about 457,000 shares trading.

Sector peer Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferreds were also under pressure.

The preferreds (NYSE: DUKPrA) fell 11 cents to close at $26.35 on volume of about 297,000 shares.

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