Preferreds firm; EnLink, GM Financial add deals to calendar; recent deals active

By Stephanie N. Rotondo

Seattle, Sept. 11 – The preferred stock market was climbing higher on Monday, echoing the positive tone of the broader markets.

The Wells Fargo Hybrid and Preferred Securities index was up 28 basis points. The U.S. iShares Preferred Stock ETF was up 31 bps.

EnLink Midstream Partners LP announced a new issue on Monday, an offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred units.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are running the deal.

The company does not plan to list the units on any exchange.

General Motors Financial Co. Inc. also announced a deal, an offering of $1,000-par series A fixed-to-floating rate cumulative preferreds.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo are the joint bookrunners.

Dividends will be fixed and payable semiannually until Sept. 30, 2027. At that point, the dividend rate will float at Libor plus a spread and will be paid on a quarterly basis.

The preferreds become redeemable on Sept. 30, 2027 at par plus accrued dividends.

As for the previous week’s new issues, TCF Financial Corp.’s $175 million of 5.7% series C noncumulative preferreds topped the day’s trading, with over 624,000 preferreds being exchanged.

The issue mirrored the day’s positive feel, ending up 6 cents at $25.11.

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