Preferreds rebound, GasLog’s gains continue, Legacy Reserves soars

By Abigail W. Adams

Portland, Me., Jan. 11 – Preferreds rebounded in the secondary market on Thursday, eclipsing the losses from Wednesday’s session.

The Wells Fargo Hybrid and Preferred Security Index gained 17 basis points by the market close Thursday after slipping 16 bps during Wednesday’s session.

The U.S. iShares Preferred Stock ETF also climbed 0.32% by market close Thursday after ending Wednesday down 0.18%.

As the broader markets rebounded, GasLog Partners LP’s recently priced 8.2% series B cumulative redeemable perpetual fixed-to-floating rate preference units continued their upward momentum.

The series B preference units climbed 29 cents to $25.49, an increase of 1.15%, by the market close Thursday. The units have made steady gains since they were feed to trade for over-the-counter business under the temporary symbol “GSLPF” early Wednesday.

The notes were up 20 cents to $25.20, an increase of 0.68%, at market close Wednesday.

In contrast, Annaly Capital Management Inc.’s recently priced 6.5% series G fixed-to-floating-rate perpetual cumulative redeemable preferred stock continues to decrease.

The preferred stock priced at par of $25 on Monday. It was down 0.01 cents to $24.68, a decrease of 0.04%, at market close Thursday.

Legacy Reserves LP 8% series A and 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units both made significant gains during Thursday’s session.

The series A units were up 13.97% and the series B units were up 13.81% in early trades Thursday, but lost momentum during the day. The series A units were up 49 cents to $5.93, an increase of 9.01%, at the market close Thursday.

The series B units were also up 49 cents to $5.85, an increase of 9.14%, at the market close.

While both made significant gains, the $25-par units are still trading for pennies on the dollar. However, a turnaround in the company’s fortunes seems to be in the works, Seeking Alpha reported.

The Midland, Texas-based limited partnership focused on the acquisition and development of oil and natural gas properties recently announced a debt reduction plan.

Legacy repurchased $187 million in its 6.625% senior notes due 2021 from Fir Tree Partners for $131 million, and now owns 55% of the outstanding amount, according to a company release.

Rather than retire the notes, Legacy has opted to retain them, thereby increasing its voting power in regards to the debt.

The dividend payments on the both units were suspended in January 2016, however, the units are cumulative.

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