Preferreds firm; EnLink, GM Financial add deals to calendar; recent deals active

By Stephanie N. Rotondo

Seattle, Sept. 11 – The preferred stock market was climbing higher on Monday, echoing the positive tone of the broader markets.

The Wells Fargo Hybrid and Preferred Securities index was up 28 basis points. The U.S. iShares Preferred Stock ETF was up 31 bps.

The gains came as Hurricane Irma was downgraded to a tropical storm. Easing concerns about a nuclear test in North Korea also helped give the markets a boost.

EnLink Midstream Partners LP announced a new issue on Monday, an offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred units.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are running the deal.

The company does not plan to list the units on any exchange.

Proceeds will be used for capital expenditures and general partnership purposes.

General Motors Financial Co. Inc. also announced a deal, an offering of $1,000-par series A fixed-to-floating rate cumulative preferreds.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo are the joint bookrunners.

Dividends will be fixed and payable semiannually until Sept. 30, 2027. At that point, the dividend rate will float at Libor plus a spread and will be paid on a quarterly basis.

The preferreds become redeemable on Sept. 30, 2027 at par plus accrued dividends.

The new securities will not be listed on any exchange.

The Fort Worth, Texas-based provider of auto financing will add proceeds from the offering to its general funds, which are available to use for general corporate purposes.

Neither deal had priced at day’s end.

“As far as I know, GM is still roadshowing,” a market source said.

As for the previous week’s new issues, TCF Financial Corp.’s $175 million of 5.7% series C noncumulative preferreds topped the day’s trading, with over 624,000 preferreds being exchanged.

The issue mirrored the day’s positive feel, ending up 6 cents at $25.11.

The deal came Thursday via Morgan Stanley and UBS Securities LLC. The issue freed to trade around midday on Friday.

The temporary ticker is “TCFFP.”

The Carlyle Group’s $400 million of 5.875% series A perpetual preferred units were also busier than not, but fell 3 cents to close at $24.99.

Over 545,000 of the units traded during the session.

The deal came Wednesday tighter than the 6% price talk. The issue then freed to trade around midday on Thursday. Its temporary ticker symbol is “CGGGP.”

Morgan Stanley, BofA Merrill Lynch, UBS, Wells Fargo and JPMorgan led the deal.

And, Pennsylvania Real Estate Investment Trust’s $120 million of 6.875% series D cumulative redeemable perpetual preferred stock – a deal that came late Thursday – improved a nickel to $24.70.

Over 322,000 of those preferreds moved in trading.

The preferreds freed to trade on Friday, getting a temporary symbol of “PEIDP.”

Wells Fargo, Citigroup, Jefferies LLC, JPMorgan and Stifel Nicolaus & Co. Inc. ran the books.

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