Oaktree sells preferreds; Monmouth enters at-the-market agreement; Energy Transfer up

By James McCandless

San Antonio, Aug. 2 – The preferred market remained fixed on newer issues as the primary market became active.

Oaktree Capital Group, LLC priced $235 million of $25-par 6.55% series B preferred units.

Monmouth Real Estate Investment Corp. entered into an at-the-market offering for $125 million of its 6.125% series C cumulative redeemable preferred stock.

Energy Transfer Partners, LP’s recent 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units and its existing 7.375% series C preferred units rose.

Bank of America Corp.’s recent 5.875% series HH non-cumulative perpetual preferred stock gained.

KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock trended lower.

Oaktree prices

Oaktree priced $235 million of $25-par series B preferred units with a dividend of 6.55%.

The deal was announced Thursday morning.

There is a $32.25 million greenshoe.

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).

Monmouth eyes market

Monmouth has entered into an agreement to sell up to $125 million of its $25-par 6.125% series C cumulative redeemable preferred stock.

The at-the-market sales agreement lists B. Riley FBR, Inc. as the distributor.

Sales will be by means of ordinary brokers’ transactions, at prices related to prevailing market prices or at negotiated prices (see related story elsewhere in this issue).

Energy Transfer up

Energy Transfer’s new 7.625% series D preferred units and its existing 7.375% series C preferred units saw sharp gains 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.

The series D preferreds (NYSE: ETPPrD) were up 47 cents to close at $25.84 on volume of about 1.6 million shares.

On Wednesday, the series D preferreds lost 7 cents.

The series C preferreds (NYSE: ETPPrC) were up 40 cents to close at $25.45 with about 833,000 shares trading.

Bank of America gains

Bank of America’s recent series HH non-cumulative perpetual preferreds gained.

The preferreds (NYSE: BACPrK) were up 6 cents to close at $25.25 with about 629,000 shares exchanged.

On Wednesday, the preferreds lost 7 cents.

KeyCorp off

Keycorp’s 5.65% series F fixed-rate perpetual non-cumulative preferred stock trended lower.

The preferreds (NYSE: KEYPrJ) were down 1 cent to close at $24.67 on volume of about 373,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.21% at market close, shooting past the 0.04% gain seen in early trading on Thursday.

The iShares US Preferred Stock ETF was up 2 cents to $37.37.

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