Wells Fargo to redeem series J preferreds; KeyCorp falls below par; Bank of America up

By James McCandless

San Antonio, July 24 – Trading in the preferred market continued to be dominated by new issues on Tuesday.

KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock ended its first day on the market below par.

Bank of America Corp.’s new series HH non-cumulative perpetual preferred stock improved.

Energy Transfer Partners, LP’s new upsized $445 million 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units rose past par.

Meanwhile, Wells Fargo & Co. said it will redeem all of its 8% series J noncumulative perpetual class A preferred stock.

Wells Fargo redemption

Wells Fargo announced it will redeem all of its 8% series J class A preferreds.

The redemption date is Sept. 17 (see related story elsewhere in this issue).

The preferreds (NYSE: WFCPrJ) lost 2 cents to close at $25.68 on volume of about 91,000 shares.

KeyCorp below par

KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock ended its first day on the market trading below par.

The deal was priced on Monday.

The preferreds, trading under the temporary symbol “KYYCP,” were seen closing the day at $24.83 with about 4.4 million shares trading.

Bank of America rises

Bank of America’s new series HH non-cumulative perpetual preferred stock improved at the end of Tuesday trading.

The deal, which priced a week earlier, was upsized from an initial size of $250 million and came at the low end of yield talk of 5.875% to 6%.

The preferreds, trading under the temporary symbol “BKAML,” were up 3 cents to close at $25.10 with about 1.5 million shares trading.

On Monday, the preferreds were level after rising 3 cents on Friday.

Energy Transfer up

Energy Transfer’s new 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units rose above par.

The deal was priced on July 16 at $400 million and later increased in size with a partial greenshoe exercise on Monday.

The preferreds, trading under the temporary ticker “ETPZF,” were up 10 cents to close at $25.10 with about 1.2 million shares in volume.

On Monday, the preferreds were level.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.07% at market close.

The iShares US Preferred Stock ETF was up 1 cent to $37.70.

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