Morning Commentary: B. Riley offers $25-par notes; JPMorgan, Energy Transfer lower

By James McCandless

San Antonio, May 2 – The preferred space was trending lower at the open with the Wells Fargo Hybrid & Preferred Securities Financial index off by 0.08%.

In the primary space, B. Riley Financial, Inc. plans to price a $50 million offering of $25-par senior notes (BBB+) due May 31, 2024.

B. Riley FBR Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and Incapital LLC are the joint bookrunners.

The notes are redeemable on or after May 31, 2021 and prior to May 31, 2022 at $25.50 per note, on or after May 31, 2022 and prior to May 31, 2023 at $25.25 per note and on or after May 31, 2023 at par.

In the secondary, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferreds were active and slightly lower.

The preferreds (NYSE: JPMPrD) were off by 1 cent to $26.11 on volume of about 47,000 shares trading.

Elsewhere in banking and finance, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock followed the negative trend.

The preferreds (NYSE: USBPrP) started off lower by 7 cents to $26.12 with about 33,000 shares trading.

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

The preferreds (NYSE: ETPPrE) were down 9 cents to $24.79 on volume of about 45,000 shares.

Real estate investment trust Cedar Realty Trust, Inc.’s 6.5% series C cumulative redeemable preferred stock was also pushed lower.

The preferreds (NYSE: CDRPrC) fell 10 cents to $22.60 with about 42,000 shares trading.

Shipping name Teekay Offshore Partners LP’s 8.5% series B cumulative redeemable preferred units were falling.

The preferreds (NYSE: TOOPrB) were down 56 cents to $20.16 on volume of about 30,000 shares.

On Wednesday, the company secured a new $100 million revolving credit facility for its Piranema Spirit, Voyageur Spirit and Petrojarl Varg FPSO units.

The company also plans to price a downsized $250 million offering of senior secured notes, Prospect News reported.

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