Dynagas LNG sells preferreds; Brunswick exercises partial greenshoe; JPMorgan lower

By James McCandless

San Antonio, Oct. 16 – The preferred market saw more activity in the primary space as the secondary strengthened.

Dynagas LNG Partners LP priced a $55 million offering of $25-par series B fixed-to-floating rate cumulative redeemable perpetual preferred units with an initial dividend of 8.75%.

Underwriters for Brunswick Corp.’s 6.5% $25-par senior notes (Baa2/BBB-/BBB) due Oct. 15, 2048 exercised a $10 million portion their $26.25 million over-allotment option on Friday.

In the secondary, JPMorgan Chase & Co.’s recent 5.75% series DD non-cumulative preferred stock declined.

Elsewhere in the financial space, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities also fell while U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock improved.

Real estate investment trust Global Net Lease, Inc.’s 7.25% series A cumulative redeemable preferred stock also fell.

In the insurance space, Allstate Corp.’s 6.625% series E fixed-rate non-cumulative perpetual preferred stock improved.

Dynagas prices

Dynagas priced a $55 million offering of $25-par series B fixed-to-floating rate cumulative redeemable perpetual preferred units with an initial dividend of 8.75%.

There is an $8.25 million greenshoe.

Morgan Stanley & Co. LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.

The preferreds are redeemable on or after Nov. 22, 2023 at par plus accrued dividends.

If the preferreds are not redeemed by Nov. 22, 2023, the dividend will convert to Libor plus 559.3 basis points.

Brunswick’s greenshoe

Brunswick’s underwriters exercised a $10 million portion their $26.25 million over-allotment option for its 6.5% $25-par senior notes (Baa2/BBB-/BBB) due Oct. 15, 2048, lifting the total deal size to $185 million.

The company priced $175 million of the notes on Oct. 1 at par to yield 6.5%, as previously reported.

Morgan Stanley, BofA Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.

The preferreds (NYSE: BCPrA) were down 1 cent to $24.95 on volume of about 104,000 shares.

JPMorgan down

Retaining its top position in the secondary space, JPMorgan’s recent 5.75% series DD non-cumulative preferred stock edged lower.

The preferreds (NYSE: JPMPrD) were down 2 cents to close at $24.98 with about 954,000 shares trading.

On Monday, the preferreds rose 2 cents.

Meanwhile, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities also declined.

The preferreds (NYSE: ALLYPrA) were down 1 cent to close at $25.97 on volume of about 753,000 shares.

U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock improved in Tuesday’s session.

The preferreds (NYSE: USBPrP) were up 2 cents to close at $24.19 with about 345,000 shares trading.

On Monday, the preferreds lost 5 cents.

Global Net Lease falls

Real estate investment trust Global Net Lease’s 7.25% series A cumulative redeemable preferred stock fell on Tuesday.

The preferreds (NYSE: GNLPrA) were down 13 cents to close at $25.00 on volume of about 190,000 shares.

Allstate gains

Allstate’s 6.625% series E fixed-rate non-cumulative perpetual preferred stock rose in the insurance space.

The preferreds (NYSE: ALLPrE) were up 3 cents to close at $25.36 with about 107,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.16% at the close, moving higher after a 0.10% gain in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 7 cents to $35.98.

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