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Preferred stocks end two-day run up; Tsakos bringing new cumulative shares; Citigroup dips
By Stephanie N. Rotondo
Phoenix, April 22 – Preferred stocks were edging lower in Wednesday trading following two days of gains in the market.
The Wells Fargo Hybrid and Preferred Securities index closed down 5 basis points.
The day saw one new issue announced, as Tsakos Energy Navigation Ltd. said it was selling at least $50 million of series D cumulative redeemable preferreds.
Price talk is 8.75% to 8.875%, according to a market source.
A trader saw a $24.55 bid in the early gray market. After the bell, another trader pegged the issue at $24.57 bid, $24.65 offered.
“It hovered around $24.55 to $24.60 all day,” the second trader said.
No pricing information was available as of 6 p.m. ET.
Morgan Stanley & Co. LLC and UBS Securities LLC are running the books on the non-rated deal. Proceeds will be used for general corporate purposes.
Meanwhile, a trader said Citigroup Inc.’s new $2 billion issue of 5.95% series P fixed-to-floating rate noncumulative preferreds “came in quite a bit” in early trading, seeing the paper at par bid, 100.125 offered.
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.
Overall, the preferred stock space continued to be quiet, a trader said. He speculated that “people are starting to hop out” for the Women’s Syndicate Association’s annual cocktail reception.
The event will be held in New York on Thursday.
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