Targa trades; Southern Co., TravelCenters admitted to NYSE; Goodrich loses early gains

By Stephanie N. Rotondo

Phoenix, Oct. 9 – Preferred stocks were modestly higher in Friday trading, according to a market source.

“On an index basis, the market was up all day, but not by much,” the source said, adding that the Wells Fargo Hybrid and Preferred Securities index traded up 2 basis points to 4 bps throughout the day.

The index ultimately closed up 2 bps.

Targa Resources Partners LP’s $110 million of 9% series A fixed-to-floating rate cumulative redeemable perpetual preferred units – an issue that priced late Wednesday, coming upsized from $75 million – were quoted at $24.55 bid, $24.65 offered early in the session, which was down some from the previous day’s close.

But the units moved up by the bell, closing at $24.75, according to a source.

The deal freed to trade on Thursday. Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.

Meanwhile, both the Southern Co.’s $1 billion of 6.25% $25-par series 2015A junior subordinated notes due 2075 and TravelCenters of America LLC’s $100 million of 8% $25-par senior notes due 2030 began trading on the New York Stock Exchange on Friday.

Southern’s ticker is “SOJA,” and TravelCenters is “TANP.”

Southern priced Oct. 1, with $875 million notes initially being sold. On Tuesday, it was reported that a $125 million greenshoe was exercised in full, lifting total issuance to $1 billion. TravelCenters came Sept. 30.

A trader quoted the Southern issue at $25.09 bid, $25.10 offered and TravelCenters at $24.90 bid, $24.94 offered.

At the bell, the Southern notes were seen closing at $25.29, with a volume weighted average price of $25.14. Paper opened at $25.09.

As for TravelCenters, it ended at $24.93, which compared to opening levels of $24.94.

Goodrich gyrates

Away from recent deals, Goodrich Petroleum Corp.’s preferreds were initially moving up as domestic crude oil prices hit $50 per barrel.

The commodity’s price gains came amid a weakening dollar and increasing tensions in Syria.

However, crude settled just below $50 by the end of business, even as a new report from Baker Hughes showed a sixth weekly decline n domestic producing rigs.

As crude prices came in, so did Goodrich’s preferreds.

The 10% series C cumulative preferreds (NYSE: GDPPC) were up 30 cents, or 8.35%, early in the day, trading at $3.90. The shares finished at $3.53, which was off 7 cents, or 1.94%.

The 9.75% series D cumulative preferreds (NYSE: GDPPD) were meantime up a nickel, or 4.75%, at mid-morning at $3.60. Those shares closed down 17 cents, or 4.79%, at $3.38.

JPMorgan up pre-earnings

JPMorgan Chase & Co. is slated to kick off third-quarter earnings season on Tuesday. Ahead of the bank’s quarterly results, its preferreds were moving up.

The 6.125% series Y noncumulative preferreds (NYSE: JPMPF) rose a nickel to $25.25, while the 6.15% series BB noncumulative preferreds (NYSE: JPMPH) gained 4 cents to end at $25.27.

The 6.1% series AA noncumulative preferreds (NYSE: JPMPG) improved by 11 cents, closing at $25.16.

Various sources expect the New York-based company to report earnings per share of $1.38. The company posted EPS of $1.36 for the third quarter of 2014.

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