Morning Commentary: NGL Energy’s new deal free to trade; Oxford not yet free; Colony lists on NYSE

By Stephanie N. Rotondo

Seattle, June 7 – The preferred stock primary market took a breather on Wednesday, though a trader said he was hearing a real estate investment trust deal could hit the books on Thursday.

As for the deals already priced this week, NGL Energy Partners LP’s $185 million of 9% class B fixed-to-floating rate cumulative redeemable preferred units had freed to trade by mid-morning.

A trader pegged the units in a $24.90 to $24.95 context.

The deal came Tuesday, in line with price talk but upsized from $50 million.

UBS Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets ran the books.

Meanwhile, Oxford Lane Capital Corp.’s $62.5 million of 6.75% series 2024 term preferreds – another deal priced Tuesday – had not yet freed, according to a trader.

He saw the issue around $24.65.

Ladenburg Thalmann & Co. Inc. is the lead manager. BB&T Capital Markets and William Blair & Co. are the joint bookrunners. National Securities Corp. is the co-manager.

In other news, Colony NorthStar Inc.’s $345 million of 7.15% series I cumulative redeemable perpetual preferreds listed on the New York Stock Exchange on Wednesday, as was expected.

The ticker symbol is “CLNSPrI.”

The paper was trading at $25.16 in early dealings, a gain of 8 cents from the open but up 11 cents from Tuesday’s close.

The issue priced May 30.

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