Preferreds soften; Golar prices $120 million preferreds; Gamco, Steel Partners improve

By Cristal Cody

Tupelo, Miss., Oct. 24 – Preferred shares were weaker on Tuesday amid new issuance.

The Wells Fargo Hybrid and Preferred Securities index dropped 7 basis points.

The U.S. iShares Preferred Stock ETF closed off 5 bps.

Golar LNG Partners LP tapped the preferred primary market on Tuesday and priced $120 million of 8.75% series A perpetual cumulative redeemable preferred units.

On Monday, Gamco Natural Resources Gold & Income Trust priced $30 million of 5.2% cumulative preferreds in a 1.2 million share offering.

The series A preferreds were freed to trade late Monday under the temporary symbol “GNGTP” and were seen ending Tuesday in over the counter trading up 2 cents, or 0.08%, to $24.85.

Several issuers have brought preferreds to the market in October, including JPMorgan Chase & Co., Teekay LNG Partners LP, Steel Partners Holdings LP and National Storage Affiliates Trust.

Teekay LNG Partners’ 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred units closed off 2 cents, or 0.08%, at $25.00.

The Hamilton, Bermuda-based provider of marine transportation services for liquefied gas, petroleum and oil sold $150 million of the preferreds on Oct. 16. The preferreds were freed to trade on Oct. 17 and issued the temporary symbol “TKYYF.”

Steel Partners Holdings’ 6% series A preferred units (NYSE: SPLPPrA) improved 12 cents, or 0.54%, to go out at $21.32.

The New York City-based diversified holding company issued the preferreds due Feb. 7, 2026 as part of an exchange for shares of Handy & Harman Ltd. that expired on Oct. 12.

National Storage Affiliates Trust’s 6% series A cumulative redeemable preferreds (Nasdaq: NSAPrA) closed down 10 cents, or 0.41%, at $25.29.

The Greenwood Village, Colo.-based real estate investment trust sold $150 million of the $25-par 6% preferreds on Oct. 3. With the underwriters’ exercise of an over-allotment option, the total deal size was $172.5 million.

Golar brings 8.75% preferreds

Golar LNG Partners sold $120 million of 8.75% series A cumulative redeemable preferred units on Tuesday at $25.00 per unit, according to an FWP filing with the Securities and Exchange Commission.

The offering included 4.8 million units.

Morgan Stanley & Co. LLC and BofA Merrill Lynch were the bookrunners.

There is a 30-day over-allotment option.

The liquidation preference is $25.00.

Golar will apply to list the preferred units on the Nasdaq Global Select Market under the symbol “GMLPP.”

Proceeds will be used for general partnership purposes, including debt repayment, working capital, capital expenditures and acquisitions.

Hamilton, Bermuda-based Golar LNG is an owner and operator of liquid natural gas carriers.

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