Bank of America’s new preferreds top par; Energy Transfer gains; Digital Realty flat

By James McCandless

San Antonio, July 18 – Trading in the preferred market was dominated by two new issues in the primary space.

Bank of America Corp.’s new $854 million of series HH non-cumulative perpetual preferred stock ended above par in the primary market while its series GG preferreds improved in secondary trading.

Energy Transfer Partners, LP’s new $400 million 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units improved, approaching par.

Meanwhile, Digital Realty Trust, Inc.’s 7.375% series H cumulative redeemable preferred stock was level in active secondary trading.

Bank of America above par

Bank of America’s new $854 million of 5.875% series HH non-cumulative perpetual preferred stock ended its first day on the market upwards of par.

The deal, which priced late on Tuesday, was upsized from an initial size of $250 million and came at the low end of yield talk of 5.875% to 6%.

The preferreds, trading under the temporary symbol “BKAML,” were spotted at $25.12 at market close with about 8,042,000 shares trading.

In the secondary market, the company’s existing 6% series GG non-cumulative preferred stock improved, stopping a recent negative trend.

The preferreds (NYSE: BACPrB) were up 15 cents to close at $26.00 on volume of about 523,000 shares.

Energy Transfer improves

Elsewhere in the primary space, Energy Transfer Partners’ new $400 million issue of 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units were pushing upwards, reaching closer to par on its second day of trading.

The deal was priced on Monday.

The preferreds, trading under the temporary ticker “ETPZF,” were up 5 cents to close at $24.90 with about 1,216,000 shares exchanged.

Digital Realty Trust level

Digital Realty Trust’s 7.375% series H cumulative redeemable preferred stock ended the day unchanged, despite an uptick in trading activity.

The preferreds (NYSE: DLRPrH) were level at $25.91 with about 423,000 shares trading.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.08% at market close, reversing a 0.09% increase in early trading on Wednesday.

The iShares US Preferred Stock ETF was down 3 cents to $37.51.

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