Ladenburg starts offering, greenshoe partly exercised; Legacy zooms on settlement; Tsakos up

By James McCandless

San Antonio, June 25 – The preferred market started the week largely declining in a spillover from downward trends in the broader markets.

Ladenburg Thalmann Financial Services Inc. started a $25 million at-the-market sale of its 7% senior notes and also reported that the greenshoe had been partially exercised on an earlier underwritten offering of those securities.

Legacy Reserves LP’s series A and B preferred units saw multi-point gains after the company agreed to a settlement in class action lawsuits filed by holders of those units.

Tsakos Energy Navigation Ltd.’s new $135 million 9.5% series F fixed-to-floating perpetual preferreds traded up.

Enstar Group Ltd.’s new $400 million 7% series D fixed-to-floating rate perpetual preferred shares declined.

Ladenburg begins offering

Ladenburg Thalmann Financial Services launched a $25 million at-the-market sale program for its 7% $25-par senior notes due 2028.

Ladenburg Thalmann & Co. Inc. will be agent for the sales.

The company said that the underwriters of the original $40 million offering from May exercised $1,412,375 of the $6 million over-allotment option, increasing the sale to $41,412,375 (see related stories elsewhere in this issue).

Legacy Reserves gains

Legacy Reserves’ series A and B 8% fixed-to-floating rate cumulative redeemable perpetual preferred units made multi-point gains with about 168,000 and 800,000 shares trading, respectively.

The company announced Monday that, as part of a settlement with noteholders, it had agreed to amend the terms of a transaction so that its 8% series A preferred units will be converted into the right to receive 2.92033118 shares of common stock of New Legacy and its 8% series B preferred units into the right to receive 2.90650421 shares of common stock of New Legacy (see related story elsewhere in this issue).

The series A units (Nasdaq: LGCYP) were up $3.45 to $16.70.

The series B units (Nasdaq: LGCYO) were up $5.09 to $16.69.

Tsakos up

Tsakos’ new $135 million of series F fixed-to-floating rate cumulative redeemable perpetual preferred shares gained in trading on Monday.

The preferreds, trading under the temporary ticker “TSSKF,” were up 6 cents to $24.67 on activity of about 670,000 shares.

The deal was priced last Thursday.

Enstar off

Enstar’s new $400 million series D fixed-to-floating rate perpetual preferred shares declined 4 cents to $25.24.

The preferreds, trading under the temporary ticker “ENSTF,” saw volume of about 591,000 shares.

The deal priced on June 20.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.06% at market close after being lower by as much as 0.13% in early trading Monday.

The iShares US Preferred Stock ETF was down 4 cents to close at $37.53.

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