Energy Transfer’s new issue reaches par; Bank of America active; MetLife improves

By James McCandless

San Antonio, July 19 – The preferred market continued to be monopolized by two new issues.

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

Bank of America Corp.’s new $854 million of series HH non-cumulative perpetual preferred stock declined.

Meanwhile, MetLife, Inc.’s 5.625% series E non-cumulative preferred shares also improved with the market.

Energy Transfer up

Energy Transfer Partners’ new preferred units traded up to par.

The deal was priced on Monday.

The preferreds, trading under the temporary ticker “ETPZF,” were up 10 cents to close at $25.00 with about 2 million shares trading.

On Wednesday, the preferreds were up 5 cents.

In the secondary market, the company’s existing 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units also gained their way back to par after a precipitous decline.

The series C preferreds (NYSE: ETPPrC) were up 10 cents to close at $25.00 with about 798,000 shares exchanged.

Bank of America mixed

Bank of America’s new series HH non-cumulative perpetual preferred stock declined on its second day on the market.

The deal, which pricing 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, which trade under the temporary symbol “BKAML,” lost 2 cents to close at $25.10 on volume of about 1,514,000 shares.

The company’s older 6% series GG non-cumulative preferred stock continued to gain in secondary trading.

The preferreds (NYSE: BACPrB) were up 2 cents to $26.02 on volume of about 416,000 shares.

On Wednesday, the series GG preferreds picked up 15 cents.

MetLife improves

MetLife’s 5.625% series E non-cumulative preferred shares traded up.

The preferreds (NYSE: METPrE) rose 10 cents to close at $25.47 with about 276,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.18% at market close, tripling the 0.06% gain in early trading on Thursday.

The iShares US Preferred Stock ETF was up 13 cents to $37.64.

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