Bank of America taps $25-par market; Energy Transfer preferreds gain; JPMorgan weaker

By James McCandless

San Antonio, June 20 – The preferred market sustained its positive trend on Thursday that began earlier in the week.

In primary activity, Bank of America Corp. priced a $1,325,000,000 offering of $25-par series KK non-cumulative preferred stock with a dividend of 5.375%.

BofA Securities, Inc. is the bookrunner. J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC and RBC Capital Markets, LLC are also underwriters.

The preferred are redeemable on or after June 25, 2024 at par. Prior to that, they are redeemable within 90 days after a capital treatment event.

Leading the secondary, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were gaining.

The preferreds (NYSE: ETPPrE) were up 11 cents to close at $25.01 on volume of about 740,000 shares.

Meanwhile, in finance, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds saw a weaker day.

The preferreds (NYSE: JPMPrC) shaved off 7 cents to close at $27.07 with about 268,000 shares trading.

Sector peer Citigroup, Inc.’s 6.875% series K fixed-to-floating-rate non-cumulative preferred stock also declined.

The preferreds (NYSE: CPrK) dipped 15 cents to close at $27.78 on volume of about 220,000 shares.

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