Digital Realty, Global Indemnity deals list; oil names rebound with increase in oil prices

By Stephanie N. Rotondo

Phoenix, Aug. 28 – It was a “mixed bag in preferreds,” a trader said of Friday trading.

“[Treasury] bonds are up slightly, equities are down slightly,” said. “It’s like ‘so what, who cares?’”

The Wells Fargo Hybrid and Preferred Securities index ended up 23 basis points. Earlier in the session, the index was up 11 bps.

As was expected, Digital Realty Trust Inc.’s $250 million of 6.35% series I cumulative redeemable perpetual preferred stock – a deal from Aug. 13 – listed on the New York Stock Exchange on Friday.

The ticker symbol is “DLRPI.”

The preferreds were trading at $24.62 early in the day versus opening levels of $24.68. However, the paper eventually moved up to $24.72.

Global Indemnity plc’s $100 million of 7.75% $25-par subordinated notes due 2045 also listed, hitting the Nasdaq Global Select Market under the ticker symbol “GBLIZ.”

The notes were trading at $24.60, unchanged from the open. There were a wide range of trades, however, between $24 and the closing price.

That issue priced Aug. 5.

Oil preferreds on the rise

Away from new listings, a trader said that “oil guys are getting a little bounce back” as crude oil prices recovered from the week’s lows.

U.S. benchmark crude improved 6.63% on the day, due in part to expectations that weakening prices would damped production.

More unrest in Yemen was also helping to push paper up, as questions about the stability of the region grew.

On Thursday, oil prices had also popped after Venezuela requested an emergency meeting of OPEC to discuss what to do about the recent price rout. However, that meeting will likely only occur if Saudi Arabia consents. But that country has previously indicated that it does not see a need to decrease production.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) were up 87 cents, or 6.35%, trading at $14.57. Legacy Reserves LP’s 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) were meantime 59 cents, or 3.87%, higher at $15.84.

Legacy’s 8% series A fixed-to-floating rate cumulative redeemable preferred units (Nasdaq: LGCYP) jumped 92 cents, or 6.18%, to $15.80.

One of the biggest sector movers – on a percentage basis – was Goodrich Petroleum Corp.’s 10% series C cumulative preferreds (NYSE: GDPPC), which ended up 79 cents, or 42.25%, to $2.66.

The Goodrich 9.75% series D cumulative preferreds (NYSE: GDPD) closed at $2.40, up 20 cents, or 9.09%.

And, Vanguard Natural Resources LLC’s 7.875% series A cumulative redeemable preferred units (Nasdaq: VNRAP) improved 60 cents to $22.02, a gain of 2.8%.

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