Ladenburg Thalmann prices $25-par senior notes; Spire preferreds jump; SoCal Edison up

By James McCandless

San Antonio, May 21 – The preferred space saw a recovery on Tuesday after stumbling out of the gate a day earlier.

In the primary market, Ladenburg Thalmann Financial Services Inc. priced a $50 million offering of $25-par senior notes due June 30, 2029 at par with a coupon of 7.75%.

Leading in the secondary, Spire Inc.’s recent 5.9% series A cumulative redeemable perpetual preferred stock jumped higher.

Elsewhere in utilities, Southern California Edison, a subsidiary of Edison International, saw its 5% cumulative trust preferred securities rise.

Meanwhile, in oil and gas, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units also improved.

In the finance space, JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferred stock followed the positive trend.

Sector peer Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities gained.

Ladenburg taps market

Ladenburg Thalmann priced a $50 million offering of $25-par senior notes due June 30, 2029 at par with a coupon of 7.75%.

There is a $7.5 million greenshoe.

The deal was announced Tuesday morning.

UBS Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Ladenburg Thalmann & Co. Inc. are the joint bookrunners.

The notes are redeemable on or after June 30, 2022 at par.

Spire jumps

Leading activity in the secondary, Spire’s recent 5.9% series A cumulative redeemable perpetual preferred stock jumped higher in Tuesday’s session.

The preferreds, trading under the temporary symbol “SIPRY,” gained 14 cents to close at $25.75 on volume of about 337,000 shares.

On Monday, the preferreds lost 9 cents.

Elsewhere in utilities, Southern California Edison’s 5% cumulative trust preferred securities were also on the rise.

The preferreds (NYSE: SCEPrL) picked up 8 cents to close at $21.33 with about 185,000 shares trading.

Energy Transfer better

Meanwhile, in oil and gas, Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were also improving.

The preferreds (NYSE: ETPPrE) added 5 cents to close at $24.88 on volume of about 314,000 shares.

JPMorgan rises

In the finance space, JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferred stock both received a boost by the close.

The series DD preferreds (NYSE: JPMPrD) gained 14 cents to close at $26.37 with about 305,000 shares trading.

On Monday, the preferreds shaved off 1 cent.

The series EE preferreds (NYSE: JPMPrC) also gained 14 cents to close at $26.46 with about 183,000 shares trading.

On Monday, the preferreds fell 11 cents.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the market upward.

The preferreds (NYSE: ALLYPrA) were up 6 cents to close at $25.96 on volume of about 163,000 shares.

On Monday, the preferreds traded up 8 cents.

Indexes up

By the end of the session, the Wells Fargo Hybrid & Preferred Securities Financial index was up 0.19%, adding to the 0.05% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was up 14 cents to close at $36.53.

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