Preferred stock primary calendar builds up; Plains All American, Seaspan deals on tap

By Stephanie N. Rotondo

Seattle, Oct. 2 – The preferred stock primary was revving up on Monday, with three new deals getting added to the calendar.

Plains All American Pipeline LP said it was selling series B fixed-to-floating rate cumulative redeemable preferred units.

A market source speculated that the units would be $1,000-par, though it was unclear, based on the information circulating about the deal – which was not much.

“I don’t think they are actually marketing it yet,” he said. “My guess is they are marketing tomorrow.”

But the source added that he had not even seen price talk related to the deal.

“It’s weird that there were no headlines” other than the various rating agencies issuing their rating on the new issue, the source said.

S&P Global Ratings and Fitch Ratings both gave the deal a BB rating, while Moody’s Investors Service gave it a Ba3.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

Meanwhile, Seaspan Corp. said it was offering $25-par senior unsecured notes due 2027 via RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.

Initial price talk is 7.125% to 7.25%, according to a source.

Though pricing details were not available as of 6 p.m. ET, a source noted that the deal was launched at 7.125%.

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