Goodrich preferreds rally with oil price rebound; TravelCenters prices $25-par notes

By Stephanie N. Rotondo

Phoenix, Dec. 9 – Preferred stocks were flat to just a touch weaker in Tuesday trading, but despite that, there was “a rebound in oil and natural gas names,” according to a trader.

The Wells Fargo Hybrid and Preferred Securities index closed off 1 basis point.

In the oil and gas realm, a market source said Goodrich Petroleum Corp.’s 9.75% series D cumulative preferreds (NYSE: GDPPD) were the most active of paying securities, though he noted that dividends could soon be stalled, given the issue’s recent downhill descent.

The preferreds ended the day at $8.95, up $2.60, or 40.94%.

The 10% series C cumulative preferreds (NYSE: GDPPC) were meantime up $3.21, or 48.78%, to $9.79.

The gains in Goodrich and its peers came as oil prices experienced a moderate rebound a day after hitting a five-year low.

West Texas Intermediate crude oil rose 65 cents, or 1.03%, to $63.70 per barrel. Brent crude gained 56 cents to $66.75 per barrel.

In the primary space, TravelCenters of America LLC brought $120 million of 8% $25-par senior notes due 2029 shortly before the market closed on Tuesday.

Earlier in the day, a trader said the deal had “just launched officially” at 8%, noting that the deal looked to be increasing to $120 million from $100 million.

The company initially registered $57.5 million of the notes on Nov. 24. On Dec. 4, the company said it was selling $50 million, and on Monday that was upped to $100 million.

The trader also remarked that the deal looked “pretty sloppy.”

He saw the paper trading at $24.55 in the early gray market.

“It looks like they sized it up and gave it to whoever,” he said. “There’s a lot of flipping going on.”

Post-pricing, a source pegged the notes at $24.58 bid, $24.63 offered.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets and UBS Securities LLC are the joint bookrunners. MLV & Co. LLC is the lead manager.

BB&T Capital Markets, Janney Montgomery Scott LLC and Oppenheimer & Co. are co-managers.

Recent deals in focus

United States Cellular Corp.’s $275 million of 7.25% $25-par senior notes due Dec. 1, 2063 began trading on the New York Stock Exchange on Tuesday.

The deal priced Dec. 1. The ticker symbol is “UZB.”

The issue ended the day at $24.59. The notes were seen at $24.69 at mid-morning, up from opening levels of $24.60.

BofA Merrill Lynch, Morgan Stanley, RBC Capital Markets, UBS Securities and Wells Fargo Securities LLC were the joint bookrunning managers.

Investors were also eyeing other recently listed deals, including Wells Fargo Real Estate Investment Corp.’s $240 million of 6.375% series A cumulative perpetual preferreds (NYSE: WFEPA).

That deal priced Dec. 4 and began trading on the NYSE on Monday.

Paper finished the session at $24.85, down a penny.

Also in that category was Public Storage’s $175 million issue of 5.875% series A cumulative perpetual preferreds (NYSE: PSAPA), which priced Nov. 20 and listed Dec. 3.

Those preferreds traded down 2 cents to $24.58.

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