Morning Commentary: GasLog Partners bringing ‘tiny’ sale of preference units; secondary mixed

By Stephanie N. Rotondo

Seattle, May 8 – The preferred stock primary market had a new deal added to the tape early Monday.

However, the offering of series A fixed-to-floating rate cumulative redeemable preference units from GasLog Partners LP was deemed “tiny” at only $50 million.

Price talk was in the 8.75% area, according to a market source.

A trader saw the issue trading “around” $24.70 in the gray market.

Morgan Stanley & Co. LLC, UBS Securities LLC and Citigroup Global Markets Inc. are running the books. Stifel Nicolaus & Co. Inc. is the lead manager.

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 23 cents to $25.54 in early trading.

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 appeared to be trading mixed at mid-morning, as the Wells Fargo Hybrid and Preferred Securities index moved up 2 basis points, but the U.S. iShares Preferred Stock ETF was down 6 bps.

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