JPMorgan sells upsized deal at tight end of revised talk; oil rises, lifting energy issues

By Stephanie N. Rotondo

Phoenix, Feb. 5 – The primary preferred stock market saw another deal price on Thursday as JPMorgan Chase & Co. brought $1.2 billion of 6.125% series Y noncumulative perpetual preferreds.

The deal was upsized from $400 million. Price talk was initially 6.25% to 6.375% but was then revised to 6.125% to 6.25%, a trader said.

Shortly before the deal priced, the trader quoted the issue at $24.83 bid, $24.85 offered. At mid-morning, he saw an early gray market quote of $24.70 bid, $24.77 offered, adding that the paper had been around $24.80 prior to the price talk revision.

“They usually trade pretty strong,” he said of the bank’s preferreds.

In the existing JPMorgan issues, the 5.5% series O noncumulative preferreds (NYSE: JPMPD) and 6.3% series W noncumulative preferreds (NYSE: JPMPE) traded softer on the heels of the new deal.

The series O preferreds were down 29 cents, or 1.19%, at $24.13. The series W preferreds were off 11 cents at $25.61.

The secondary space meantime weakened for the second consecutive session. The Wells Fargo Hybrid and Preferred Securities index closed 9 basis points weaker.

In contrast, the energy sector had a firmer tone to it.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) rose 37 cents, or 1.7%, to $22.11.

Goodrich Petroleum Corp.’s 10% series C cumulative preferreds (NYSE: GDPPC) increased by 45 cents, or 5.48%, to $8.66.

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