Morning Commentary: Bank of America’s new preferreds top par; Energy Transfer better

By James McCandless

San Antonio, July 18 – Bank of America Corp.’s new $854 million 5.875% series HH non-cumulative preferred stock started its first day on the market trading above par.

The deal, which priced late on Tuesday, was upsized from an initial size of $250 million and came at the low end of yield talk of 5.875% to 6%.

BofA Merrill Lynch is the bookrunner for the offering. Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC are the lead managers.

The preferreds, trading under the temporary symbol “BKAML,” was spotted trading up 10 cents to $25.10 with about 878,000 shares in volume.

Meanwhile, Energy Transfer Partners, LP’s new 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units were seen trading higher early Wednesday.

The preferreds, trading under the temporary ticker “ETPZF,” were up 4 cents to $24.89 on volume of about 402,000 shares.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.09% in early trading, improving after a 0.27% decline at market close on Wednesday.

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