Goldman prices $1.5 billion preferreds tighter than talk; preferreds soften; Teekay better

By Cristal Cody

Tupelo, Miss., Oct. 18 – Goldman Sachs Group Inc. sold $1.5 billion of 5% depositary shares at par on Wednesday, tighter than initial price talk in the 5.25% area.

The shares are not expected to be listed on an exchange.

Preferred shares mostly were softer on the day.

The Wells Fargo Hybrid and Preferred Securities index closed down 1 basis point.

The U.S. iShares Preferred Stock ETF ended off 8 bps.

In trading, Teekay LNG Partners LP’s $150 million of 8.5% series B fixed-to-floating-rate cumulative redeemable perpetual preferred units priced on Monday and freed to trade on Tuesday closed up 7 cents, or 0.28%, to $25.04.

The preferreds were issued the temporary symbol “TKYYF.”

The distribution rate on the preferreds will convert to a floating rate equal to Libor plus a spread of 624.1 bps per year per $25.00 of liquidation preference per unit from Oct. 15.5.

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