OM Asset Management sells $25-par notes; Capital One frees to trade; Deutsche Bank lower

By Stephanie N. Rotondo

Seattle, July 27 – The preferred stock primary market continued to churn out new issues on Wednesday, with “a small deal” hitting the tape, according to a trader.

OM Asset Management plc announced an offering of $100 million $25-par senior notes due 2031.

The deal came upsized at $125 million and priced at par to yield 5.125%. Price talk was in the 5.25% area, a market source said.

A trader had not yet seen markets for the new issue.

BofA Merrill Lynch, Wells Fargo Securities LLC and Citigroup Global Markets Inc. are acting as bookrunners.

From Tuesday’s business, Capital One Financial Corp.’s $600 million of 5.2% series G noncumulative preferreds were seen trading up to par, a trader said.

The trader noted that the paper had freed to trade as of mid-morning.

The deal came tight to the 5.37% to 5.5% talk and was upsized from $250 million. BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo ran the books.

But while the new issue was doing well, the 6% series B noncumulative preferreds (NYSE: COFPP) continued to trade off, slipping 3 cents to $26.12.

As for Bank of New York Mellon Corp.’s $1 billion of 4.625% $1,000-par series F fixed-to-floating rate noncumulative preferreds, those continued to trade just north of par.

That issue came Monday via BofA Merrill Lynch, Citigroup, Morgan Stanley, UBS Securities and BNY Mellon Capital Markets LLC.

Dominion Resources Inc.’s $800 million of 5.25% 2016 series A $25-par enhanced junior subordinated notes due 2076 (NYSE: DRUA) meantime remained the top trading security, with over 1.25 million of the notes being exchanged.

The notes climbed up 11 cents to $25.12.

Public Storage’s $300 million of 4.95% series D cumulative preferreds (NYSE: PSAPD) also continued to be busy, adding a nickel to close at $24.99.

Dominion priced July 12, and Public Storage came July 13.

Deutsche drifts on earnings

Away from recent deals, Deutsche Bank AG’s trust preferreds were in decline after the company reported weak earnings.

The 7.6% TruPs (NYSE: DTK) dropped a dime to $25.72. The 8.05% TruPs (NYSE: DKT) were down 11 cents at $26.07.

The German bank has been going full-bore on cost-cutting efforts, as trading revenues have declined. For the second-quarter, the bank’s securities trading unit saw its revenue fall 28%. That helped push down net income to €18 million from €796 million a year ago.

Total net revenue dropped 19% to €7.39 billion.

Restructuring and severance costs also pressured the bottom line, as that amount swelled to €207 million from €45 million.

© 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.