Preferred stocks strong as quarter ends; Tsakos gains; New York Community Bancorp slips

By Stephanie N. Rotondo

Seattle, March 31 – As the month – and quarter – neared its end, the preferred stock market had a firm feel.

The Wells Fargo Hybrid and Preferred Securities index was up 17 basis points on Friday. The U.S. iShares Preferred Stock ETF was up a like amount, though it had been down earlier in the day.

“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.

Another source said the preferreds finished 8 cents higher at $24.98.

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.

As for other deals that came during the month, New York Community Bancorp Inc.’s $515 million of 6.375% series A fixed-to-floating rate noncumulative perpetual preferred stock (NYSE: NYCBPrA) were active, but weaker, falling 15 cents to $27.10.

The deal came March 10.

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