Gladstone Capital prices, frees; BreitBurn prices cumulative units; Entergy above par

By Stephanie N. Rotondo

Phoenix, May 14 - Preferred stocks continued to tick higher into the midweek session as the Wells Fargo Hybrid and Preferred Securities index inched up 4 basis points as of mid-morning.

The index closed up 11 bps.

More deals were entering the primary space. Gladstone Capital Corp. priced its previously announced deal, a $55 million offering of 6.75% series 2021 term preferred shares.

A trader said the issue had already freed to trade, seeing it at $24.70.

Janney Montgomery Scott LLC and Sterne, Agee & Leach, Inc. are joint bookrunning managers. J.J.B. Hilliard, W.L. Lyons, LLC, Wunderlich Securities Inc., Boenning & Scattergood Inc., Ladenburg Thalmann & Co. Inc. and Maxim Group LLC are the co-managers.

Meanwhile, BreitBurn Energy Partners LP said it was selling series A cumulative redeemable perpetual preferred units. At least $75 million of the units were expected to be sold and price talk was around 8.5%.

However, talk was then revised to 8.25% to 8.375%, a trader reported.

The issue priced late in the day, coming upsized at $175 million. The dividend was at the tight end of revised talk.

Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and MLV & Co. LLC are the joint bookrunners. Co-managers are Janney Montgomery Scott, Barclays and Oppenheimer & Co.

After the close, a trader said the deal was trading around $24.65.

The trader also noted that he was "pretty sure" Entergy Texas Inc.'s new $135 million issue of 5.625% $25-par first mortgage bonds due 2064 had freed up as well.

The issue priced Tuesday.

The trader quoted the notes at $25.20 bid, $25.35 offered.

Another trader saw the issue ending the day at $25.25.

Morgan Stanley, BofA Merrill Lynch and Wells Fargo were the joint bookrunning managers.

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