Morning Commentary: Oaktree offers preferreds; Energy Transfer, Bank of America gain

By James McCandless

San Antonio, Aug. 2 – Oaktree Capital Group, LLC plans to price an offering of $25-par series B preferred units.

The deal was announced Thursday morning.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC are the joint bookrunners (see related story elsewhere in this issue).

Meanwhile, Energy Transfer Partners, LP’s recent $445 million 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units jumped up on news that the company would be acquired by Energy Transfer Equity, LP in a transaction to simplify the corporate structure. The sale is expected to close in fourth-quarter 2018.

Energy Transfer’s 7.625% series D preferreds (NYSE: ETPPrD) were up 42 cents to $25.79 on volume of about 760,000 shares.

The company’s existing 7.375% series C preferred units (NYSE: ETPPrC) were up 43 cents to $25.48 with about 457,000 shares trading.

Separately, Bank of America Corp.’s recent 5.875% series HH non-cumulative perpetual preferred stock gained in early trading

The preferreds (NYSE: BACPrK) were up 1 cent to $25.20 on volume of about 101,000 shares.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.04% in early trading after a 0.35% loss at market close on Wednesday.

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