Global Ship, American Equity price; BancorpSouth, Compass below par; JPMorgan weaker

By James McCandless

San Antonio, Nov. 14 – The preferred market ended the Thursday session with an upward trend.

The primary market saw Global Ship Lease, Inc. price a $27.5 million offering of $25-par senior notes due Dec. 31, 2024 at par with a coupon of 8%.

American Equity Investment Life Holding Co. priced a $400 million offering of series A fixed-rate reset non-cumulative preferred stock at par with a dividend of 5.95%.

On its first trading day, BancorpSouth Bank’s new $150 million 5.5% series A non-cumulative perpetual preferred stock finished below par.

Elsewhere in finance, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferred stock ended weaker.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds improved.

Middle market name Compass Diversified Holdings LLC’s new $100 million 7.875% series C cumulative preferred shares also closed under par.

Oil and gas company Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units dropped.

Global Ship Lease’s deal

A steady primary market saw Global Ship Lease price a $27.5 million offering of $25-par senior notes due Dec. 31, 2024 at par with a coupon of 8%.

There is a $4,125,000 greenshoe.

The deal was announced on Wednesday.

B. Riley FBR, Inc., Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Co., LLC are the joint bookrunners.

Dividends are payable quarterly on the last day of February, May, August and November, commencing Feb. 29, 2020.

The notes are redeemable on or after Dec. 31, 2021 and prior to Dec. 31, 2022 at 102%; on or after Dec. 31, 2022 and prior to Dec. 31, 2023 at 101%; and on or after Dec. 31, 2023 at par. The notes are also redeemable prior to Dec. 31, 2021 after a change-of-control event at 104%.

American Equity prices

Also on Thursday, American Equity priced a $400 million offering of series A fixed-rate reset non-cumulative preferred stock (BB/BB) at par with a dividend of 5.95%.

There is no greenshoe.

The deal was announced on Tuesday.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities LLC and RBC Capital Markets, LLC are the joint bookrunners.

Dividends will be payable on March 1, June 1, Sept. 1 and Dec. 1 of each year, commencing on March 1, 2020.

The dividend resets on Dec. 1, 2024 to a rate equal to the five-year U.S. Treasury rate plus 432.2 basis points.

BancorpSouth below par

On its first day trading in the secondary, BancorpSouth’s new $150 million 5.5% series A non-cumulative perpetual preferred stock finished just shy of par.

The preferreds, trading under the temporary symbol “BCSBP,” were spotted closing at $24.96 on volume of about 1.4 million shares.

The deal priced on Wednesday.

Elsewhere in the finance space, JPMorgan’s 4.75% series GG non-cumulative perpetual preferred stock ended the session weaker.

The preferreds (NYSE: JPMPrJ) were down by 1 cent to close at $25.00 with about 1.2 million shares trading.

On Wednesday, the preferreds shot up 15 cents.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds saw an improvement.

The preferreds (NYSE: COFPrI) improved by 9 cents to close at $24.83 on volume of about 718,000 shares.

On Wednesday, the preferreds added 15 cents.

Compass under par

Middle market investment name Compass’ new $100 million 7.875% series C cumulative preferred shares also closed under par on their first day.

The preferreds, trading under the temporary symbol “CMPSP,” closed at $24.65 with about 1.3 million shares trading.

The deal priced on Wednesday.

Energy Transfer drops

Meanwhile, oil and gas company Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units dropped.

The preferreds (NYSE: ETPPrE) fell 38 cents to close at $24.57 on volume of about 268,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished up by 0.22%, retaining most of the 0.23% rise from early Thursday trading.

The iShares US Preferred Stock ETF was up 2 cents to $37.28.

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