Teekay Offshore’s recent deal lists on NYSE; Citi’s new $1,000-pars steady, Goldman’s firm

By Stephanie N. Rotondo

Phoenix, April 21 – Preferred stocks remained firm Tuesday as investors kept one eye on the situation in Greece.

The nation’s stocks dropped Tuesday after it was reported that the European Central Bank was putting together contingency plans for both an “orderly” and “disorderly” default by the country. That came on the heels of news that the Greek government was ordering its states to send any cash reserves to its central bank.

The Wells Fargo Hybrid and Preferred Securities index ended the session up 14 basis points. However, one market source noted that the index was up even more, “maybe 20 bps or so,” earlier in the day.

“Things faded in the afternoon,” he said.

Additionally, overall volume was “really light.”

Teekay Offshore Partners LP’s $125 million of 8.5% series B cumulative redeemable preferred units began trading on the New York Stock Exchange on Tuesday.

The deal came April 13. The ticker symbol is “TOOPB.”

Paper closed at $24.88, up from opening levels of $24.72.

Among other recent deals, Citigroup Inc.’s $2 billion of 5.95% series P fixed-to-floating rate noncumulative preferreds were seen at 100.25 bid, 100.5 offered in early trading.

That market was echoed after the close, with the volume weighted average price pegged at 100.49.

The deal priced Monday. Initial price talk was 6.125%.

Citigroup Global Markets Inc. ran the books.

The dividend will be fixed until May 15, 2025 and will be payable semiannually during that time. After that date, the issue will begin floating at Libor plus 390.5 bps and will be payable quarterly.

Also in the $1,000-par space, the Goldman Sachs Group Inc.’s $2 billion of 5.375% series M fixed-to-floating rate noncumulative preferreds were initially quoted at 100.5 bid, 100.75 offered but rose to trade above 101, according to a source.

“It was up higher earlier,” he said, but drifted down in sympathy with the rest of the market.

That issue priced Thursday after the New York-based bank reported earnings. The dividend will be fixed until May 10, 2020, during which time it will be payable on a semiannual basis. After that date, the dividend will float at Libor plus 392.2 bps and will be payable quarterly.

Goldman Sachs & Co. ran the books

Rounding out the new $1,000-par issues, JPMorgan Chase & Co.’s $2 billion of 5.3% series Z fixed-to-floating rate noncumulative preferreds – priced April 14 via J.P. Morgan Securities LLC – ended at 100.6, though the VWAP was a little higher at 100.73.

While fixed, the dividend will be payable semiannually. Once floating – at Libor plus 380 bps, beginning May 1, 2020 – the dividend will be payable quarterly.

And in $25-par land, New York Mortgage Trust Inc.’s $90 million of 7.875% series C cumulative redeemable preferreds were quoted at $24.77 bid, $24.82 offered.

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