CMS Energy, State Street tap primary market; JPMorgan, Associated Banc-Corp move lower

By James McCandless

San Antonio, Sept. 20 – The preferred space saw an active primary market while newer issues dominated secondary activity.

CMS Energy Corp. sold a $250 million offering of $25-par 5.875% junior subordinated notes due 2078.

State Street Corp. priced a $500 million offering of $1,000-par 5.625% series H fixed-to-floating rate non-cumulative perpetual preferred stock.

In secondary trading, JPMorgan Chase & Co.’s new $1,475,000,000 issue of $25-par 5.75% series DD non-cumulative preferred stock declined.

Associated Banc-Corp’s new $100 million of $25-par 5.875% series E non-cumulative perpetual preferred stock ended the day below par.

Chimera Investment Corp.’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock rose.

CMS Energy prices

CMS Energy said it priced $250 million of $25-par junior subordinated notes due 2078 (Baa2/BBB-/BB+) with a coupon of 5.875%.

There is a $37.5 million greenshoe.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners. Citigroup Global Markets Inc. and RBC Capital Markets, LLC are the lead managers.

The notes are redeemable on or after Oct. 15, 2023 at par. Prior to that, they are redeemable upon the occurrence of a tax event or rating agency event.

State Street’s deal

State Street sold $500 million of $1,000-par series H fixed-to-floating rate non-cumulative perpetual preferred stock (Baa1/BBB/BBB) at par with an initial dividend of 5.625%.

There is no greenshoe.

Goldman Sachs & Co. LLC, Morgan Stanley and Wells Fargo are the joint bookrunners.

The preferreds are redeemable on or after Dec. 15, 2023 at par. Prior to that, they are redeemable upon the occurrence of a regulatory capital treatment event.

JPMorgan edges lower

JPMorgan’s new $1,475,000,000 offering of $25-par 5.75% series DD non-cumulative preferred stock traded lower, leading secondary activity.

The preferreds, trading under the temporary symbol “JPMLL,” were down 1 cent to close at $24.99 on volume of about 2 million shares.

On Wednesday, the preferreds rose 2 cents.

The deal priced Sept. 17.

Associated Banc-Corp sinks

Elsewhere, Associated Banc-Corp’s new $100 million of $25-par 5.875% series E non-cumulative perpetual preferred stock ended well below par on its first day of trading.

The preferreds, trading under the temporary symbol “ABCCL,” were seen ending at $24.30 with about 1.7 million shares trading.

The deal priced Sept. 19.

Chimera gains

Chimera’s new $250 million of 7.75% series C fixed-to-floating rate cumulative redeemable preferred stock improved.

The preferreds, trading under the temporary symbol “CIMPP,” were up 6 cents to close at $24.95 on volume of about 526,000 shares.

On Wednesday, the preferreds declined 2 cents.

The deal priced Sept. 13.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.10% at market close after losing 0.11% in early trading on Thursday.

The iShares US Preferred Stock ETF was up 2 cents to $37.10.

© 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.