FIG

摘要

JP MORGAN returned to the primary market on Wednesday with a highly telegraphed bond that broke the record for the lowest coupon on a US bank preferred stock deal. The US$2bn US$1,000 par perpetual non-call five preferred rate-reset bond was vague in its use of proceeds, but is expected to fund the redemption of two bonds, one banker away from the trade said. Last month, JP Morgan announced plans to redeem its US$1.425bn 6.10% Series AA and US$1.15bn 6.15% Series BB on June 1. At a final coupon of 3.65%, the yield tightened by 72.5bp from initial price thoughts set at 4.375%. At that level, it priced 245bp tight to the outstanding notes it is retiring in June, representing substantial interest rate savings for the company.