Sotherly Hotels taps preferred market; Duke Energy improves; JPMorgan, KeyCorp decline

By James McCandless

San Antonio, April 11 – Rumblings in the preferred primary market served as the backdrop for a mixed performance in the secondary space.

Sotherly Hotels Inc. priced a $27 million offering of $25-par series D cumulative redeemable perpetual preferred stock at par with a dividend of 8.25%.

There is a $4.05 million greenshoe.

The deal, announced on Monday, matched the initial $27 million offering amount and came in at the low end of talk for a dividend of 8.25% to 8.5%.

In the secondary, Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferred stock saw a positive swing.

The preferreds (NYSE: DUKPrA) were up 2 cents to close at $25.73 on volume of about 410,000 shares.

Elsewhere, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds were pushed lower.

The preferreds (NYSE: JPMPrC) lost 4 cents to close at $26.50 with about 321,000 shares trading.

Sector peer KeyCorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock was also down.

The preferreds (NYSE: KEYPrJ) fell 10 cents to close at $25.08 on volume of about 148,000 shares.

U.S. Bancorp’s series B non-cumulative perpetual preferreds followed the trend, edging lower.

The preferreds (NYSE: USBPrH) dropped 2 cents to close at $19.13 with about 112,000 shares trading.

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