NGL Energy prices upsized deal in line with talk; Oxford Lane sells term preferreds

By Stephanie N. Rotondo

Seattle, June 6 – The preferred stock primary market got a piece of the action on Tuesday, as two new deals priced.

NGL Energy Partners LP brought $185 million of 9% class B fixed-to-floating rate cumulative redeemable preferreds units. The deal came in line with price talk but was increased from an expected $50 million.

NGL’s deal came alongside another new issue from Oxford Lane Capital Corp., which was announced late Monday.

Oxford sold $62.5 million of 6.75% series 2024 term preferred stock. Like NGL, the deal came in line with price talk.

Among recently priced deals, DDR Corp.’s $175 million of 6.375% class A cumulative redeemable preferred stock began trading on the New York Stock Exchange on Tuesday under the ticker symbol “DDRPrA.”

The paper finished the session at $25.45, which compared to opening levels of $25.28.

The deal priced May 30, coming upsized from $100 million and tight to the 6.5% price talk.

Meanwhile, Colony NorthStar Inc.’s $345 million of 7.15% series I cumulative redeemable perpetual preferreds are expected to hit the NYSE on Wednesday, a market source reported.

The trading symbol will be “CLNSPrI.” Currently, the issue has a temporary ticker, “CLNYP.”

The preferreds ended at $25.05, a gain of 6 cents on the day.

The issue priced on May 30.

NGL deal upsized

NGL Energy priced a $185 million issue of 9% class B fixed-to-floating rate cumulative redeemable preferred units on Tuesday.

Price talk was 9%. The deal came upsized from $50 million.

Ahead of pricing, a trader saw the units at $24.65 bid in the gray market.

UBS Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets ran the books.

The distribution rate will be fixed until July 1, 2022, at which point the rate will float at Libor plus 721.3 basis points.

The units become redeemable on or after July 1, 2022, or upon a change of control, at par plus accrued distributions.

Proceeds will be used for general partnership purposes, including the retirement of other senior debt.

NGL is a Tulsa, Okla.-based oil and gas company.

Oxford brings term preferreds

Oxford Lane sold $62.5 million 6.75% series 2024 term preferred stock via an underwritten public offering on Tuesday.

Price talk was 6.75%.

The issue – which was first announced late Monday – was pegged at $24.75 offered in the early gray market.

As the market prepared for the new issue, the company’s 8.125% series 2024 term preferreds (Nasdaq: OXLCN) fell 54 cents, or 2.10%, to $25.13.

Ladenburg Thalmann & Co. Inc. is the lead manager. BB&T Capital Markets and William Blair & Co. are the joint bookrunners. National Securities Corp. is the co-manager.

The new issue becomes callable on June 30, 2020 at par plus accrued dividends.

Proceeds will be used to redeem all of the $50.5 million outstanding 8.125% term preferreds, which become redeemable on June 30. Any remaining funds will be used for investment purposes, general working capital and/or to redeem a portion of the outstanding 7.5% series 2023 term preferred shares.

Oxford Lane is a Greenwich, Conn.-based investment company.

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