Preferreds hold their ground; DTE’s $25-par debentures free to trade; NuStar units to list

By Stephanie N. Rotondo

Seattle, Nov. 29 – Preferred stocks were moderately weak in early Tuesday trading but eventually finished unchanged for the day.

The Wells Fargo Hybrid and Preferred Securities index closed flat, though it was down 13 basis points at mid-morning.

DTE Energy Co.’s new $280 million of 6% $25-par 2016 series F junior subordinated debentures due 2076 – a deal priced Monday – “went out at $25.75,” a market source said at the close.

The source also noted that the paper freed to trade.

The debentures were seen in a $24.75 to $24.80 context in early trading.

The deal came at the tight end of the 6% to 6.125% price talk via BofA Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC. The Detroit-based power producer will use proceeds to redeem $280 million of the outstanding 2011 series I 6.5% junior subordinated debentures due 2061 (NYSE: DTZ).

Those debentures traded up 2 cents at $25.08.

The redemption date is Dec. 28.

Meanwhile, a market source said NuStar Energy LP’s $200 million of 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferred units will begin trading on the New York Stock Exchange on Wednesday.

The ticker symbol will be “NSPA.” The units are trading under a temporary ticker, “NTSRF.”

At the bell, the units were pegged at $25.10, which was off a dime from the previous session, and down 20 cents from $25.30 as of Tuesday’s open.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.