SoCal Edison, Capital One issues free to trade, assigned temporary symbols; Fannie, Freddie down

By Stephanie N. Rotondo

Phoenix, Aug. 18 – New preferred stock issues from Monday’s business were doing well come Tuesday.

A trader said both Southern California Edison Co.’s SCE Trust IV $325 million of 5.375% fixed-to-floating rate trust preference securities and Capital One Financial Corp.’s $500 million of 6.2% fixed-rate series F noncumulative preferreds had freed to trade early in the session.

Both deals were also assigned temporary trading symbols.

The Southern California Edison symbol is “SCTTP,” and the Capital One symbol is “CPTFP.”

As for the Southern California Edison deal, those securities closed at $25.29, unchanged from the open.

“It’s an investment-grade name,” he said. “A lot of insurance companies like to hold utilities, since they can only hold so many financials.”

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, BNY Mellon Capital Markets LLC and BNP Paribas Securities Corp. ran the books on the new issue.

When declared, distributions will be payable quarterly at a fixed rate until Sept. 15, 2025, when the distribution rate will begin to float at Libor plus 313.2 basis points.

Overall, the preferred stock market ended down 6 basis points, going by the Wells Fargo Hybrid and Preferred Securities index.

A market source said that GSE preferreds were “heavily traded” again on Tuesday.

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