GE Capital prices new notes at 4.875%; NuStar active and higher as greenshoe exercised

By Stephanie N. Rotondo

Phoenix, Jan. 22 - Preferred stocks were slightly weaker on Tuesday, but new and recent issues remained in focus.

General Electric Capital Corp. kicked off the shortened holiday week by announcing a new issue of at least $250 million $25-par senior notes due 2053. The deal priced after the close, coming upsized at $550 million with a 4.875% yield.

However, market sources saw the issue faring only moderately during the session.

Among other recent issues, NuStar Logistics LP's $350 million of 7.625% fixed-to-floating rate subordinated notes due 2043 were dominating trading as the company announced it exercised its over-allotment option in full.

GE Capital brings deal

General Electric Capital brought $550 million of 4.875% senior notes due 2053 on Tuesday.

The deal came in line with price talk but was upsized from $250 million.

A trader pegged the notes at $24.60 bid, $24.62 offered in the gray market as of midday.

After the market closed, another source said the issue was trading "either side" of $24.60.

"There's no real new issue premium," the source said of the so-so performance. "They've got a lot of supply under their name."

In fact, a "reshuffle" of the 4.875% notes due 2052 (NYSE: GEB) - an $825 million deal that priced Oct. 3 - resulted in the notes falling 42 cents, or 1.62%, to $25.43.

GE Capital is the Norwalk, Conn.-based financing arm of General Electric Co.

NuStar greenshoe exercised

NuStar Logistics' 7.625% $25-par fixed-to-floating rate notes due 2043 were deemed the most active issue of the day by a market source.

The source saw at least 972,000 shares changing hands, as the notes rose 2 cents to $25.92.

The deal priced Jan. 14.

On Tuesday, the San Antonio-based provider of storage and transportation for petroleum products said that its $52.5 million greenshoe was exercised in full, bringing total issuance to $402.5 million.

The interest rate will be fixed through April 15, 2018, at which time the rate will begin floating at Libor plus 673.4 basis points.

NextEra, TravelCenters listed

NextEra Energy Capital Holdings Inc.'s $425 million of series J junior subordinated debentures due 2073 listed on the New York Stock Exchange under the symbol "NEEPJ." The issue priced Jan. 15.

TravelCenters of America LLC's $100 million of 8.25% $25-par senior notes due 2028 also listed, under the ticker "TANN."

The TravelCenters issue came Jan. 8.

NextEra's series J securities were trading at $24.61, down from opening levels of $24.67. TravelCenters was at $25.22, up from $25.10.

A trader said that Federal Agricultural Mortgage Corp. - or Farmer Mac, as it is more commonly referred to - is expected to list its $60 million of 5.875% series C perpetual preferreds on Wednesday under the symbol "AGMPA."

The Farmer Mac notes priced Jan. 14.

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