GasLog Partners brings upsized sale of preference units; secondary liquidity limited

By Stephanie N. Rotondo

Seattle, May 8 – A new issue entered the preferred stock market on Monday, as the space finished the day with a firmer tone.

GasLog Partners LP brought $125 million of 8.625% series A fixed-to-floating rate cumulative redeemable preference units, upsizing from $50 million.

Initial price talk was 8.75%.

Toward the end of the day, but ahead of pricing, a market source placed the issue in a $24.85 to $24.87 context. Earlier in the session, a trader saw the issue trading “around” $24.70 in the gray market.

Morgan Stanley & Co. LLC, UBS Securities LLC, Stifel Nicolaus & Co. Inc. and Citigroup Global Markets Inc. ran the books.

The distribution rate will be fixed until June 15, 2027. After that, the rate will float at Libor plus 631 basis points.

The units are callable June 15, 2027 at par plus accrued distributions.

Proceeds will be used for general partnership purposes, which may include future acquisitions, debt repayment, capital expenditures and working capital.

On the heels of the new issue announcement, parent company GasLog Ltd. saw its 8.75% series A cumulative redeemable preference shares (NYSE: GLOGPrA) falling 30 cents, or 1.16%, to $25.47.

While trading that particular issue was limited, it still saw above average volume for the day.

Looking toward the rest of the week, a trader said “we are hoping to see a couple [business development company] deals this week.”

As for the secondary, it was starting out “quiet,” a trader said.

Overall, preferred stocks were mixed at mid-morning but trended higher by the bell.

The Wells Fargo Hybrid and Preferred Securities index increased by 14 bps, as the U.S. iShares Preferred Stock ETF rose 5 bps.

Qwest Corp.’s 6.75% $25-par notes due 2057 (NYSE: CTDD) hit par again on Monday, after retreating from that mark early last week.

That equaled a gain of a penny on the day.

Meanwhile, Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) finished 3 cents better at $6.59, while Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) were unchanged at $6.26.

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