Morning Commentary: Preferreds rising following Fed news; TravelCenters gets temporary symbol

By Stephanie N. Rotondo

Phoenix, Dec. 18 – Preferred stocks were firming up again Thursday as investors continued to react positively to the Federal Reserve statement that came out Wednesday.

One trader said it appeared that the central bank was in no hurry to raise rates, speculating that they could wait until 2016 to do so.

“That’s a positive, I believe,” he said.

The Wells Fargo Hybrid and Preferred Securities index was up 24 basis points at mid-morning.

TravelCenters of America LLC’s $120 million of 8% $25-par notes due 2029 were assigned a temporary reporting symbol on Thursday, according to a trader.

The deal priced Dec. 9. The temporary symbol is “TANO.”

A trader said he last saw the issue trading at $25.19, though he did not think that was necessarily accurate. He added that paper was being offered at $24.70.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC were the joint bookrunners.

Meanwhile, a rebound in oil prices was pushing up Vanguard Natural Resources LLC’s preferred issues.

The 7.875% series A cumulative redeemable preferred units (Nasdaq: VNRAP) were up 81 cents, or 4.21%, at $20.10 in early trading. The 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) increased 74 cents, or 4.1%, to $18.78, and the 7.75% series C cumulative redeemable preferred units (Nasdaq: VNRCP) gained 92 cents, or 5.12%, to $18.91.

© 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.