JPMorgan sells upsized $1.1 billion deal at tightened dividend; commodity preferreds sink

By Stephanie N. Rotondo

Phoenix, July 22 – The preferred stock market saw a new deal price on Wednesday.

JPMorgan Chase & Co. brought $1.1 billion of 6.15% $25-par series BB noncumulative preferred stock.

Price talk was initially around 6.25%, according to a trader, but was later revised to 6.15%.

“They are probably going to tighten the yield to around 6.125%, I’m guessing,” the trader said prior to pricing, adding that the new issue seemed “well-received by retail.”

The deal was also upsized from $400 million.

“There’s a lot of retail on it,” another market source said.

Ahead of pricing, a trader saw a gray market quote of $24.60 bid, $24.65 offered for the paper.

Later in the day, that same trader noted that price talk had been revised and pegged the issue at $24.60 bid, $24.70 offered.

J.P. Morgan Securities LLC is running the books. Joint lead managers are BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Meanwhile, weakness in commodities continued to pressure Gamco Global Gold, Natural Resources & Income Trust’s 5% series B cumulative preferred shares (NYSE: GGNPB), which were “selling off a little bit again because of gold getting hammered,” a trader reported.

The preferreds of the Gabelli-run fund ended off 24 cents, or 1.13%, at $20.98.

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