Global Partners prices preferreds; Bank of America improves; Energy Transfer slips

By James McCandless

San Antonio, July 31 – The preferred market continued to see trading volume center on newer issues on Tuesday.

Global Partners LP priced $60 million of $25-par series A fixed-to-floating rate cumulative redeemable perpetual preferred units.

Bank of America Corp.’s recent series HH non-cumulative perpetual preferred stock improved.

Energy Transfer Partners, LP’s recent $445 million 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units trended lower.

Wells Fargo & Co.’s series W non-cumulative class A preferred stock rose amid increased investor attention.

Global Partners prices

Global Partners priced $60 million of $25-par series A fixed-to-floating rate cumulative redeemable perpetual preferred units.

The deal, announced Tuesday morning, was upsized from talk of $40 million and matched yield talk for an initial dividend of 9.75%. After an initial fixed-rate period, the dividend converts to a floating rate of Libor plus 677.4 basis points.

Stifel Nicolaus & Co. Inc., Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners (see related story elsewhere in this issue).

Bank of America up

Bank of America’s new 5.875% series HH non-cumulative perpetual preferreds spent another day gaining.

The preferreds (NYSE: BACPrK) were up 3 cents to close at $25.26 on volume of 1.2 million shares.

On Monday, the preferreds picked up 6 cents.

Energy Transfer falls

Energy Transfer’s new 7.625% series D preferred units edged lower.

The preferreds (NYSE: ETPPrD) were down 1 cent to close at $25.26 with about 752,000 shares trading.

On Monday, the preferreds gained 30 cents.

Wells Fargo trades up

Wells Fargo’s series W non-cumulative class A preferred stock edged upward.

The preferreds (NYSE: WFCPrW) were 2 cents higher to close at $25.25 on volume of about 447,000 shares.

Indexes rise

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.11% at market close, increasing from a 0.08% gain in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 2 cents to $37.59. The ETF lost 3 cents on Monday.

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