Deals from NGL Energy, Oxford Lane free to trade; Colony NorthStar lists; GSE paper mixed

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 market source said the units ended the day at $24.94.

At 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.

The distribution rate will be fixed until July 1, 2022, at which point the rate will float at Libor plus 721.3 basis points.

The units become redeemable on or after July 1, 2022, or upon a change of control, at par plus accrued distributions.

Proceeds will be used for general partnership purposes, including the retirement of other senior debt.

Meanwhile, Oxford Lane Capital Corp.’s $62.5 million of 6.75% series 2024 term preferreds – another deal priced on Tuesday – freed in afternoon trading, according to a market source.

The source saw the paper at $24.65 bid, no offers.

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.

The issue becomes callable on June 30, 2020 at par plus accrued dividends.

Proceeds will be used to redeem all of the $50.5 million outstanding 8.125% series 2024 term preferreds, which become redeemable on June 30. Any remaining funds will be used for investment purposes, general working capital and/or to redeem a portion of the outstanding 7.5% series 2023 term preferred shares.

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 closed the session at $25.10. It 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.

Away from new or recent issues, Fannie Mae and Freddie Mac preferreds were on the active side, though the most active issues were mixed on the day.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) rose a nickel to $6.45, while Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) dipped 15 cents, or 2.42%, to $6.05.

There was no fresh news out to cause the moves in the GSE-linked paper.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.