Teekay Offshore, Saul Centers price new offerings; AmTrust’s decline continues

By Abigail W. Adams

Portland, Me., Jan. 16 – The preferred stock primary market was active Tuesday with two new deals pricing after the market close on Tuesday.

Teekay Offshore Partners LP priced $115 million, or 4.6 million units, of 8.875% perpetual series E fixed-to-floating rate cumulative redeemable preferred units at par of $25.

Morgan Stanley & Co., UBS Securities, J.P. Morgan Securities, and Stifel, Nicolaus & Co. were joint bookrunners for the offering, which carries a greenshoe of $17.25 million, or 690,000 units, according to the deal’s term sheet.

The series E perpetual cumulative redeemable preferred units will have a fixed dividend of 8.875% until Feb. 15, 2025 and will then switch to a floating rate of Libor plus a spread of 640.7 bps.

The notes are callable at par on or after Feb. 15, 2025, according to the prospectus.

Teekay intends to list the preferred stock on the New York Stock Exchange under the symbol “TOOPrE”.

The Hamilton, Bermuda-based provider of marine transportation, oil production, storage, long-distance towing and off-shore installation maintenance and safety services to the oil industry’s outstanding preferred stock declined during Tuesday’s session.

Teekay’s 7.25% series A cumulative perpetual redeemable preferred stock slipped about 64 cents, or 2.68%, to end the day at $23.0987.

Teekay’s 8.5% series B cumulative perpetual redeemable preferred units slipped 51 cents, or 2.04%, to end the day at $24.49.

Saul Centers, Inc. priced $75 million of 6.125% series D cumulative redeemable preferred stock after the market close.

Raymond James, RBC Capital Markets, Stifel, Nicolaus & Co., B. Riley FBR and D.A. Davidson & Co. were joint bookrunners for the offering, which carries a $11.25 million greenshoe.

The preferreds will be listed for trading on the New York Stock Exchange under the symbol “BFSPrD.”

Proceeds from the new offering will be used to redeem the Bethesda, Md.-based real estate investment trust’s 6.875% series C preferred stock, which has $180 million outstanding.

The 6.875% series C preferred stock was up on Tuesday and ended the day at $25.1166, an increase of about 8 cents, or 0.35%.

AmTrust sinks

In the secondary market, AmTrust Financial Services Inc.’s series A-F preferred stock continued to nosedive.

AmTrust’s 6.75% series A preferred stock was down $2.33, or 12.05%, to $17.00 early in Tuesday’s session.

AmTrust’s 7.25% series B preferred stock was down $2.89, or 13.81%, to $18.06.

AmTrust’s 7.625% series C preferred stock was down $2.32, or 10.91%, to $18.94.

AmTrust’s 7.5% series D preferred stock was down $2.65, or 12.58%, to $18.42.

AmTrust’s 7.75% series E preferred stock was down $1.74, or 7.67%, to $19.99.

AmTrust’s 6.95% series F preferred stock was down $2.17, or 11.03%, to $17.50.

AmTrust’s preferred stock has seen steady declines since a buy-out proposal, which would take the New York-based multinational property and casualty insurance company private, was announced last week.

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