Oil and gas preferreds drop as OPEC projects weaker 2015 demand; TravelCenters frees up

By Stephanie N. Rotondo

Phoenix, Dec. 10 – The preferred stock market was trading off with the broader markets Wednesday following news that OPEC is expecting to see a worsening decline in oil demand in 2015.

On the heels of that, a trader said that “oil and natural gas guys are jumping around again.”

Bellwether name Goodrich Petroleum Corp. was certainly following that trend, despite gaining about 40% to 50% in value on Tuesday in response to a modest surge in oil prices.

The oil producer also put out a capital expenditure and operational update on Wednesday. Of note in the release was the announcement that the company is looking to sell its Eagle Ford Shale assets in the first half of 2015.

Back in the primary, a trader said that TravelCenters of America LLC’s $120 million of 8% $25-par senior notes due 2029 had freed to trade.

The deal priced before the market closed on Tuesday via Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC.

The trader quoted the issue at $24.60 bid, $24.70 offered at mid-morning. After the bell, a market source said the notes were trading around $24.60 for most of the day but went out $24.68 bid, $24.72 offered.

The issue had closed at $24.55 on Tuesday.

There was meantime little talk of any other new deals coming for the week, the trader said.

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