Morning Commentary: NGL Energy on tap; Duke Energy tops par; National Retail lower

By James McCandless

San Antonio, March 26 – The preferred space started Tuesday pushing higher with the Wells Fargo Hybrid & Preferred Securities Financial index opening up 0.07%.

NGL Energy Partners LP plans to price a $50 million offering of $25-par class C fixed-to-floating rate cumulative redeemable perpetual preferred units with an initial dividend in the 9.625% area.

RBC Capital Markets, LLC, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners.

Stifel, Nicolaus & Co., Inc. is the lead manager.

The preferreds are redeemable on or after April 15, 2024. Prior to that, they are redeemable within 120 days after a change-of-control event.

The dividend is fixed until April 15, 2024, then converts to Libor plus a spread.

Meanwhile, Duke Energy Corp.’s new $1 billion 5.75% series A cumulative redeemable perpetual preferred stock was spotted trading above par on its first day.

The preferreds, trading under the temporary symbol “DUEKL,” were seen trading at $25.25 on volume of about 6.8 million shares.

Real estate investment trust National Retail Properties, Inc.’s 5.7% series E cumulative redeemable preferred stock was pushing lower at the open.

The preferreds (NYSE: NNNPrE) were down 6 cents to $25.10 with about 415,000 shares trading.

Elsewhere, in the finance space, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities started the session better.

The preferreds (NYSE: CPrN) added 8 cents to $27.02 on volume of about 113,000 shares.

Sector peer JPMorgan Chase & Co.’s 5.45% series P non-cumulative preferred stock followed the positive trend.

The preferreds (NYSE: JPMPrA) were up 7 cents to $25.34 with about 85,000 shares trading.

Insurance name American International Group, Inc.’s 5.85% series A non-cumulative perpetual preferred stock was also slightly better.

The preferreds (NYSE: AIGPrA) picked up 4 cents to $25.19 on volume of about 86,000 shares.

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