Ardmore Shipping cancels $25-par notes; Morgan Stanley, SoCal Edison preferreds weaken

By James McCandless

San Antonio, Nov. 19 – The preferred space saw a largely negative day at the start of the holiday week.

The primary market saw Ardmore Shipping Corp. cancel its plans for $25-par notes due 2023.

In the secondary, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds led the market lower.

Elsewhere in finance, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock declined.

Goldman Sachs Group, Inc.’s 5.5% fixed-to-floating rate non-cumulative perpetual preferreds and its floating rate non-cumulative preferreds were mixed.

In utilities, Southern California Edison Co., a subsidiary of Edison International, saw its 5% cumulative trust preferred securities trend negative.

Middle market investment company Compass Diversified Holdings LLC’s 7.875% series B fixed-to-floating rate cumulative preferreds also saw a sharp loss.

Ardmore nixes offering

Ardmore Shipping cancelled its plans to price $25-par notes due 2023 due to capital market conditions.

The deal was announced Monday morning.

Morgan Stanley & Co. LLC and Stifel, Nicolaus & Co., Inc. were the joint bookrunners.

B. Riley FBR, Inc., BB&T Capital Markets, Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. were the co-managers.

Morgan Stanley lower

At the top of secondary activity, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds ended the session lower.

The preferreds (NYSE: MSPrK) were down 18 cents to close at $26.38 on volume of about 423,000 shares.

On Friday, the preferreds lost 2 cents.

Elsewhere in finance, JPMorgan’s 5.75% series DD non-cumulative preferred stock joined the negative trend.

The preferreds (NYSE: JPMPrD) were off 13 cents to close at $24.45 with about 422,000 shares trading.

Goldman Sachs’ 5.5% fixed-to-floating rate non-cumulative perpetual preferreds and its floating rate non-cumulative preferreds traded mixed.

The 5.5% preferreds (NYSE: GSPrJ) were down 20 cents to close at $24.50 on volume of about 390,000 shares.

On Friday, the 5.5% preferreds gained 1 cent.

The floating-rate preferreds (NYSE: GSPrD) were up 30 cents to close at $20.56 on volume of about 309,000 shares.

SoCal Edison sinks

Meanwhile, Southern California Edison’s 5% cumulative trust preferred securities saw a steep decline.

The preferreds (NYSE: SCEPrL) were down 71 cents to close at $18.63 with about 359,000 shares trading.

Compass negative

Middle market investment company Compass’ 7.875% series B fixed-to-floating rate cumulative preferreds ended the day worse off.

The preferreds (NYSE: CODIPrB) were down 75 cents to close at $20.72 on volume of about 159,000 shares trading.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.36% at the end of the session, extending a 0.04% loss at the start of Monday trading.

The iShares US Preferred Stock ETF fell 21 cents to $35.55.

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