Hartford Financial taps market; JPMorgan improves in secondary; Energy Transfer flat

By James McCandless

San Antonio, Oct. 30 – The preferred secondary space saw a mixed day on Tuesday as the primary market saw one new deal.

Hartford Financial Services Group, Inc. priced $300 million of $25-par series G non-cumulative perpetual preferred stock (Baa3/BBB-) at par with a dividend of 6%.

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

Elsewhere in finance, Morgan Stanley’s 5.85% series K fixed-to-floating rate preferreds declined while Charles Schwab Corp.’s 5.95% series D non-cumulative perpetual preferreds gained.

Meanwhile in the energy sector, Energy Transfer Partners, LP’s 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units were active but level.

Telecom giant AT&T, Inc.’s 5.35% global notes due 2066 moved lower.

Hartford prices

Hartford priced $300 million of $25-par series G non-cumulative perpetual preferred stock (Baa3/BBB-) at par with a dividend of 6%.

The deal was announced Tuesday morning at an initial size of $200 million and came in at the low end of talk for a dividend between 6% and 6.125%.

There is a $45 million greenshoe.

Wells Fargo Securities, LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners. J.P. Morgan Securities LLC is the lead manager.

JPMorgan rises

In the secondary, JPMorgan’s 5.75% series DD non-cumulative preferred stock edged higher.

The preferreds (NYSE: JPMPrD) were up 1 cent to close at $25.10 on volume of about 1.1 million shares.

On Monday, the preferreds picked up 8 cents.

Elsewhere, Morgan Stanley’s 5.85% series K fixed-to-floating rate preferreds traded down in the Tuesday session.

The preferreds (NYSE: MSPrK) were off 9 cents to close at $25.32 with about 521,000 shares trading.

On Monday, the preferreds gained 32 cents.

Charles Schwab’s 5.95% series D non-cumulative perpetual preferreds rose.

The preferreds (NYSE: SCHWPrD) were up 8 cents to close at $25.95 on volume of about 490,000 shares.

Energy Transfer level

While improving in intraday trading, Energy Transfer’s 7.625% series D fixed-to-floating rate preferred units ended Tuesday unchanged.

The preferreds (NYSE: ETPPrD), while opening higher at $25.65, ended the session level at $25.60 on volume of about 309,000 shares.

AT&T off

Telecom name AT&T’s 5.35% global notes due 2066 declined.

The notes (NYSE: TBB) were down 18 cents to close at $23.62 on volume of about 155,000 notes.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.11% at the end of the session, reversing a 0.02% gain at Tuesday’s open.

The iShares US Preferred Stock ETF was lower by 2 cents to $36.11.

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