Preferreds improve amid thin liquidity on Christmas Eve; Vanguard Natural improves

By Christine Van Dusen

Atlanta, Dec. 24 – The preferred stock market mostly improved on Thursday, with names like Breitburn Energy Partners LP, Legacy Reserves LP and Vanguard Natural Resources LLC moving higher from Wednesday amid thin trading on Christmas Eve.

Breitburn’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) were up 48 cents at $5.60 at the open, then traded at $5.55 later in the day. Legacy Reserves’ 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) were up 58 cents at $6.24 before moving to $5.95, still up from Wednesday.

Vanguard Natural Resources’ 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) opened at $9.61, up 52 cents, then climbed to $10.81.

Those gains came following an improvement in domestic crude, which stemmed from an American Petroleum Institute report that showed inventories declined by greater-than-forecast 3.6 million barrels last week.

In other trading, New York-based Medley Capital Corp.’s new $70 million 6.5% $25-par notes due Jan. 30, 2021 that listed on the New York Stock Exchange as “MCX” on Wednesday opened down 9 cents on Thursday, at $24.55. The notes later moved up to $24.60.

The deal priced Dec. 15 at a discounted price of $24.7325, indicating a 6.75% yield, with Keefe Bruyette & Woods Inc., Deutsche Bank Securities Inc., Sandler O’Neill & Partners LP and Janney Montgomery Scott LLC as the joint bookrunners.

Proceeds will be used to redeem $40 million of unsecured notes due March 30, 2019, to repay a portion of debt under a revolving credit facility, to fund new investment opportunities and for general corporate purposes.

And CHS Inc.’s 6.75% series 3 class B reset rate cumulative redeemable preferreds (Nasdaq: CHSCM) opened Thursday at $26.67, down 11 cents, while the 7.1% series 2 class B reset rate cumulative redeemable preferreds (Nasdaq: CHSCN) began the day at $27.19, flat to Wednesday. Later on Thursday the notes were spotted at $26.73.

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