Energy Transfer’s new preferreds end higher; AT&T’s notes improve after bumpy week

By James McCandless

San Antonio, April 27 – Traders reported moderate activity to end the week in the preferred market with stocks finishing upward.

Energy Transfer Partners, LP’s new preferred units led the market in volume again, trading upward.

AT&T, Inc.’s $25-par notes closed the week up after experiencing losses throughout the week over a disappointing first-quarter earnings report and antitrust probes.

Allstate Corp.’s recent issues ended the week gaining as the company faces a class-action lawsuit over fraud allegations.

Energy Transfer leads

Energy Transfer’s recently priced $450 million of series C fixed-to-floating rate cumulative redeemable perpetual preferred units ended the week leading in volume on Friday with about 880,000 shares trading hands.

The 7.375% preferreds priced after the market close on April 18.

The preferreds rose 10 cents to close at $24.80 on Friday.

AT&T edges up

AT&T’s 5.35% global notes due 2066 ended the week up after a week of losses stemming from a disappointing first-quarter earnings report issued Wednesday. The company posted a $1 billion revenue loss and earnings of 85 cents per share that were 3 cents below analyst estimates.

The company has also been fighting against antitrust probes from the Department of Justice. A high-profile trial has been underway for some weeks over whether an attempted merger with Time Warner would hurt or help consumers. Another more recent probe is alleging that the company is cooperating with Verizon to make it difficult for consumers to switch wireless carriers.

With about 242,000 shares exchanged, the preferreds gained 2 cents to $24.53.

Allstate gains

Allstate’s recent $500 million pricing of $25-par 5.625% series G perpetual preferred shares, with about 159,000 shares trading, gained after some declines throughout the week as the company was recently named in a class-action lawsuit alleging that the company allegedly used false data to deliberately reduce the value of vehicles in total loss insurance claims in order to reduce claim payments to consumers.

The preferreds closed up 3 cents to $25.08.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index lost 0.12% at the end of trading Friday, adding to the 0.07% decline seen in morning trading.

The iShares US Preferred Stock ETF rose 5 cents to close at $37.10.

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