Morning Commentary: Preferred stocks mixed in quarter-end trading; Tsakos rises; Scorpio dips

By Stephanie N. Rotondo

Seattle, March 31 – As the month – and quarter – neared its end, the preferred stock market was trending mixed.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points at mid-morning on Friday. However, the U.S. iShares Preferred Stock ETF was down 3 bps.

“There’s nothing really moving,” a trader lamented.

In the week’s new issues, Tsakos Energy Navigation Ltd.’s new $100 million of 9.25% series E fixed-to-floating rate cumulative redeemable preferreds were firming, with a trader quoting the paper at $24.90 bid, $24.95 offered.

The deal priced late Wednesday, coming upsized from $50 million. The preferreds are trading under a temporary ticker, “TNPEP.”

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC, Citigroup Global Markets Inc. and Stifel Nicolaus & Co. Inc. ran the books.

Scorpio Tankers Inc.’s $50 million of 8.25% $25-par senior notes due 2019 – a deal priced on Tuesday – were meantime seen at $24.75 bid, $24.80 offered.

That was down from trades around par on Thursday.

Global Indemnity Ltd.’s $130 million of 7.875% $25-par subordinated notes due 2047 – a deal from March 16 – was then pegged at $24.85.

A trader noted that the issue has yet to get a symbol, though the notes are expected to begin trading on the Nasdaq Global Select Market under “GBLIL” soon.

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