Energy Transfer taps market; Bank of America preferreds fall; First Republic slips

By James McCandless

San Antonio, July 16 – The start of the week in the preferred market saw broad declines on Monday.

Energy Transfer Partners, LP’s 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units sank following the sale of $400 million of new series D fixed-to-floaters on Monday.

Bank of America Corp.’s 6% series GG non-cumulative preferred stock also fell.

Meanwhile, First Republic Bank’s recent series I noncumulative perpetual preferred stock dropped more than 1%.

Energy Transfer prices

Energy Transfer sold $400 million of 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units at par of $25.00 on Monday, according to an FWP filing with the Securities and Exchange Commission.

There is a $60 million, or 2.4 million share, over-allotment option.

Beginning Aug. 15, 2023, the preferreds convert to a floating rate equal to Libor plus 473.8 basis points.

Joint bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC.

The company’s older 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units lost 1.38% of their value after the offering of series D preferreds was announced.

The series C preferreds (NYSE: ETPPrC) were down 35 cents to close at $25.00 with about 1,046,000 shares trading.

Bank of America slides

Bank of America’s 6% series GG non-cumulative preferred stock declined, reversing the gains experienced Friday.

The preferreds (NYSE: BACPrB) were down 26 cents to close at $26.13 with about 408,000 shares in volume.

On Friday, the preferreds were up 2 cents.

First Republic down

First Republic’s 5.5% series I noncumulative perpetual preferred stock also saw losses on Monday.

The preferreds (NYSE: FRCPrI) were down 27 cents to close at $24.73 with about 302,000 shares trading.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.40% at market close, widening from the 0.30% decline in early trading on Monday.

The iShares US Preferred Stock ETF was down 7 cents to $37.60.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.