JPMorgan preferreds falter in active trading; CubeSmart, Gladstone price new preferred issues

By Stephanie N. Rotondo

Portland, Ore., Oct. 28 - The preferred stock market was "basically flat, maybe marginally up" on Friday, a market source reported.

JPMorgan Chase & Co.'s preferreds were actively trading downward. However, a source said there was no news out to act as a catalyst, nor did he see any large prints that would have indicated a big seller.

Meanwhile, two new issues were priced during Friday's session. CubeSmart, which said Thursday it was planning to bring a deal, priced a $70 million issue of 7.75% series A cumulative redeemable preferreds. Gladstone Capital Corp. priced a $35 million issue of 7.125% series 2016 term preferreds.

The CubeSmart deal seemed to be performing well, but there was little action to be seen in Gladstone.

JPMorgan falters

JPMorgan preferreds were among the day's most actively traded securities, but aside from news that the bank would not charge a debit card fee, there was nothing out to cause the heavy trading.

The 8% fixed-to-floating series Z capital securities (NYSE: JPMPZ) fell 22 cents to $25.74. Volume was over 772,000 securities.

The 7.2% fixed-to-floating capital securities (NYSE: JPMPB) were also busy and weaker, falling 27 cents, or 1.05%, to $25.33, with volume over 685,500 securities.

Among other financials, Ally Financial Inc.'s 8.125% trust preferreds (NYSE: ALLYPA) dropped a nickel to $21.33.

CubeSmart brings deal

CubeSmart priced a $70 million issue of 7.75% series A cumulative redeemable preferred stock Friday.

The deal was upsized from $50 million.

Several traders saw a $24.83 bid in the grey market but no offers.

The Wayne, Pa.-based real estate investment trust formerly known as U-Store-It will use proceeds from the preferred sale to help fund a $560 million acquisition of New York's Storage Deluxe.

Gladstone deal hits snooze

Gladstone Capital also brought a deal, a $35 million issue of 7.125% series 2016 term preferreds.

Traders reported seeing no markets in the new deal.

"No brokers have put markets out on it," a trader said.

Among other recent new deals, STAG Industrial Inc.'s 9% series A cumulative redeemable preferreds - a $60 million issue that priced Wednesday - were quoted at $24.70 bid, $24.80 offered in the grey market.

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