Teekay prices $150 million preferred units; JPMorgan details deal; Steel Partners gains

By Cristal Cody

Tupelo, Miss., Oct. 16 – Teekay LNG Partners LP sold $150 million of 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred units on Monday.

The distribution rate will convert to a floating rate equal to Libor plus a spread of 624.1 basis points per year per $25.00 of liquidation preference per unit from Oct. 15, a source said.

The offering follows JPMorgan Chase & Co.’s $1,257,500,000 sale on Friday of perpetual fixed-to-floating rate non-cumulative preferred shares. JPMorgan provided additional details of the sale in an FWP filing with the Securities and Exchange Commission.

Preferreds were mostly weaker on the day.

The Wells Fargo Hybrid and Preferred Securities index was down 4 bps on Monday.

Preferreds “bounced in an 8 bps range,” a market source said.

The U.S. iShares Preferred Stock ETF ended 16 bps weaker.

Steel Partners Holdings LP’s 6% series A preferred units closed up 37 cents, or 1.78%, to $21.20. The preferreds were down 3 cents, or 0.14%, to $20.80 over the morning.

The preferreds began trading on the New York Stock Exchange on Monday under the temporary symbol “SPLPPrT.”

The preferred units are due Feb. 7, 2026 and were issued as part of an exchange for shares of Handy & Harman Ltd. that expired on Oct. 12.

JPMorgan details deal

JPMorgan Chase sold $1,257,500,000 of perpetual fixed-to-floating rate depositary shares (Baa3/BBB-/BBB-) on Friday at par with an initial fixed rate of 4.625% in the previously reported deal, according to details in an FWP filing with the SEC.

The depositary shares each represent 1/10 of an interest in a share of JPMorgan Chase’s series CC fixed-to-floating rate non-cumulative preferred stock.

The dividend rate will convert to a floating rate of Libor plus 258 bps on Nov. 1, 2022.

Initial price thoughts were in the 4.75% area.

The shares have a liquidation preference of $1,000 per depositary share.

J.P. Morgan Securities LLC was the bookrunner.

The New York-based financial services firm plans to use the proceeds for general corporate purposes.

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