Morning Commentary: Andeavor Logistics offers preferred units; preferred stocks weaken

By Cristal Cody

Tupelo, Miss., Nov. 28 – Pricing action is expected to continue in the preferred stock market with Andeavor Logistics LP announcing plans on Tuesday to price perpetual preferred units.

On Monday, E*Trade Financial Corp. priced $300 million of fixed-to-floating rate non-cumulative perpetual preferred shares.

Also, NuStar Energy LP sold $150 million of fixed-to-floating rate cumulative redeemable perpetual preferred units.

Looking at the overall market, preferreds were weaker at the start of Tuesday’s session.

The Wells Fargo Hybrid and Preferred Securities index fell 14 basis points.

The U.S. iShares Preferred Stock ETF dropped 16 bps.

Andeavor offers preferreds

Andeavor Logistics plans to price series A fixed-to-floating rate cumulative redeemable perpetual preferred units, according to a 424B3 filing with the Securities and Exchange Commission.

The units have a liquidation preference of $1,000 per unit.

BofA Merrill Lynch, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to redeem the company’s 6.25% senior notes due 2022, to repay debt under its revolving credit facility and for general partnership purposes.

Andeavor is a San Antonio-based marketing, logistics and refining company.

© 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.