Algonquin exercises full greenshoe; Bank of America lower; Dynagas drops below par

By James McCandless

San Antonio, Oct. 17 – Wednesday in the preferred space saw a mixed session coupled with moderate trading volume.

Underwriters for Algonquin Power & Utilities Corp.’s $25-par series 2018-A fixed-to-floating rate subordinated notes due Oct. 17, 2078 fully exercised their $37.5 million over-allotment option.

Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock declined.

Elsewhere in the financial sector, JPMorgan Chase & Co.’s recent 5.75% series DD non-cumulative preferred stock improved.

Meanwhile, Dynagas LNG Partners LP’s new $55 million 8.75% series B fixed-to-floating rate cumulative redeemable perpetual preferred units ended the session below par.

Enstar Group Ltd.’s 7% series D fixed-to-floating rate perpetual preferreds fell in the insurance sector.

In the agriculture space, CHS, Inc.’s 6.75% series 3 class B reset rate cumulative redeemable preferred stock gained.

Algonquin’s greenshoe

Algonquin’s $25-par series 2018-A fixed-to-floating rate subordinated notes due Oct. 17, 2078 saw its $37.5 million over-allotment option fully exercised by the underwriters.

The company priced $250 million of the notes on Oct. 10, as previously reported.

The notes have an initial coupon of 6.875%.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC and RBC Capital Markets, LLC are the joint bookrunners.

Bank of America down

Leading in the secondary, Bank of America’s 5.875% series HH non-cumulative preferred stock declined.

The preferreds (NYSE: BACPrK) were down 7 cents to close at $24.99 on volume of about 636,000 shares.

Meanwhile, JPMorgan’s recent 5.75% series DD non-cumulative preferred stock improved at the end of Wednesday’s session.

The preferreds (NYSE: JPMPrD) were up 4 cents to close at $25.02 with about 581,000 shares trading.

On Tuesday, the preferreds lost 2 cents.

Dynagas below par

Dynagas’ new $55 million 8.75% series B fixed-to-floating rate cumulative redeemable perpetual preferred units were seen trading below par on its first day of trading.

The preferreds, trading under the temporary symbol “DGAGF,” were spotted ending the session at $24.65 on volume of about 446,000 shares.

The deal priced on Tuesday.

Enstar lower

In the insurance sector, Enstar’s 7% series D fixed-to-floating rate perpetual preferreds moved lower.

The preferreds (Nasdaq: ESGRP) were down 4 cents to close at $25.69 with about 280,000 shares trading.

CHS rises

Agricultural name CHS’ 6.75% series 3 class B reset rate cumulative redeemable preferred stock improved.

The preferreds (NYSE: CHSCM) were up 9 cents to close at $25.14 on volume of about 199,000 shares.

CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.11% at the end of the session after opening 0.06% higher early Wednesday.

The iShares US Preferred Stock ETF was up 2 cents to $36.00.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.