Preferred stocks flat as quarter ends; oil and gas names trade mixed as crude gyrates

By Stephanie N. Rotondo

Seattle, March 31 – The preferred stock market was looking to end the first quarter with a positive tone but finished the final trading session of the quarter flat.

The Wells Fargo Hybrid and Preferred Securities index was up 9 basis points at mid-morning but ended up just 1 bp.

A market source noted that volume was light.

Legacy Reserves LP had the biggest percentage gainer in trading as oil prices pushed up on a weaker dollar. While oil prices eventually waned – ending off just a touch for the day – the units held on to their gains.

Legacy’s 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) improved 19 cents, or 8.09%, to $2.54.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) – Wednesday’s biggest percentage loser – was initially recovering ground, rising 39 cents, or 5.08%, to $8.06. But by the bell, the units had come back in, falling 17 cents, or 2.22%, to $7.50.

Sector peer Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) meantime ticked up 14 cents, or 4.86%, to $3.02.

Among recently priced deals, a trader said the Gabelli Equity Trust Inc.’s $80 million of 5.45% series J cumulative redeemable preferreds were trading under a temporary symbol, “GBQTP.”

The preferreds closed the day up 2 cents at $25.02.

Earlier in the day, a trader pegged the issue at $24.95 bid, par offered.

The deal priced Monday.

Torchmark Corp.’s $300 million of 6.125% $25-par junior subordinated debentures due 2056 – a deal from Tuesday – was placed at $25.14 bid, $25.17 offered in early trades, though it ultimately moved up to $25.25.

And, Landmark Infrastructure Partners LP’s $20 million issue of 8% series A cumulative redeemable perpetual preferred units were seen offered at $24.60 at the close.

Earlier in the day, the units were offered at $24.80.

That deal came late Wednesday. It was first announced on Tuesday.

RBC Capital Markets, LLC, FBR Capital Markets & Co., Janney Montgomery Scott LLC, Wunderlich Securities, Inc., Incapital LLC and Oppenheimer & Co. Inc. were the joint bookrunners.

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