Preferred stocks improve slightly, then decline; Bluerock, Targa issues see some trading

By Christine Van Dusen

Atlanta, Oct. 21 – Preferred stocks ticked up just slightly, then dipped at the close – with limited activity noted for Bluerock Residential Growth REIT Inc. and Targa Resources Partners LP – on a down Wednesday for the larger markets.

“We haven't heard about any new issues being launched,” a trader said. “I'd say it's slightly positive, with the long bond up, but that's barely.”

Houston-based Targa's 9% fixed-to-floating rate cumulative redeemable preferred units – now listed as "NGLS.PA" – traded Wednesday morning between $25.00 and $25.05 before closing at $24.91, down 12 cents.

An additional $15 million of the units were sold last week via Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC. Added to the $110 million initially sold on Oct. 7, total issuance comes to $125 million.

The over-allotment option allowed for up to $16.5 million additional units to be sold.

Bluerock’s new issue – $62.5 million 8.25% series A cumulative redeemable perpetual preferred stock (BRGPA) that priced last week at $25.00 per share – traded between $25.10 and $25.30 on Wednesday after moving to $25.35 on Tuesday.

Wunderlich Securities Inc. and Compass Point were the joint bookrunning managers. DA Davidson & Co. and Janney Montgomery Scott LLC were co-lead managers.

© 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.