QVC sells $25-par senior notes; Morgan Stanley finishes at par; American Equity rises

By James McCandless

San Antonio, Nov. 19 – The preferred space spent the Tuesday session focused on newer issuance with mixed results.

In primary activity, QVC, Inc. priced a $435 million offering of $25-par senior secured notes due Nov. 26, 2068 at par with a coupon of 6.25%

Leading the secondary, Morgan Stanley’s new $500 million 4.875% series L non-cumulative preferred stock closed at par on its first day.

Elsewhere in finance, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferreds improved.

Sector peer CIT Group, Inc.’s 5.625% series B non-cumulative preferred stock was also lifted into a higher position.

Annuities provider American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferreds followed the positive trend.

Meanwhile, middle market investor Compass Diversified Holdings LLC’s recent 7.875% series C cumulative preferred shares were active but unchanged.

QVC prices

In Tuesday primary activity, QVC priced a $435 million offering of $25-par senior secured notes (Ba2/BBB-/BBB-) due Nov. 26, 2068 at par with a coupon of 6.25%.

There is a $65.25 million greenshoe.

The deal was announced Tuesday morning.

BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The lead manager is J.P. Morgan Securities LLC.

Dividends will be payable on March 15, June 15, Sept. 15 and Dec. 15 of each year, commencing on Dec. 15, 2019.

Morgan Stanley at par

Leading the secondary market, Morgan Stanley’s new $500 million 4.875% series L non-cumulative preferred stock closed at par on its first trading day.

The preferreds, trading under the temporary symbol “MSLQL,” finished the day at $25.00 on volume of about 1.3 million shares.

The deal priced on Monday.

Elsewhere in the finance space, JPMorgan’s 4.75% series GG non-cumulative perpetual preferreds were seen improving.

The preferreds (NYSE: JPMPrJ) picked up 20 cents to close at $25.23 with about 840,000 shares trading.

On Monday, the preferreds garnered 6 cents.

Sector peer CIT Group’s 5.625% series B non-cumulative preferred stock was launched into a higher position by the close.

The preferreds (NYSE: CITPrB) shot up 53 cents to close at $25.79 on volume of about 685,000 shares.

American Equity rises

Annuities provider American Equity’s new 5.95% series A fixed-rate reset non-cumulative preferreds followed the positive trend of top traders.

The preferreds, trading under the temporary symbol “AQYVL,” jumped up 31 cents to close at $25.85 with about 1.3 million shares trading.

On Monday, the preferreds rose 4 cents.

Compass flat

Meanwhile, middle market investor Compass’ recent 7.875% series C cumulative preferred shares were active but ended the session unchanged.

The preferreds, trading under the temporary symbol “CMPSP,” closed level at $24.58 on volume of about 382,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended lower by 0.05%, reversing a 0.03% gain in early Tuesday trading.

The iShares US Preferred Stock ETF was down 3 cents to $37.23.

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