Preferreds ticking up; Targa offers preferred units; UMH a no-show; Southern Co. improves

By Stephanie N. Rotondo

Phoenix, Oct. 7 – The preferred stock market continued to firm up in Wednesday trading.

The Wells Fargo Hybrid and Preferred Securities index pushed up 16 basis points by the bell.

As the market has rebounded this week, the new issue pipeline has picked up momentum.

Targa Resources Partners LP announced a deal on Wednesday, a $75 million offering of series A cumulative redeemable perpetual preferred units.

Price talk is 9% to 9.125%, according to a market source.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

A trader saw an early gray market of less 45 cents to less 15 cents.

A market source said the issue was expected to price at 4:30 p.m. ET, but details were not available at press time.

There was meantime no word on UMH Properties Inc.’s planned sale of $50 million series B cumulative redeemable preferreds, a deal which was announced on Monday.

As for recently priced deals, the Southern Co.’s $1 billion of 6.25% $25-par series 2015A junior subordinated notes due 2075 – a deal that came Thursday – moved up again, being quoted at $25.03 bid, $25.07 offered early in the day. By the close, a source said the issue finished at $25.47.

He saw the volume weighted average price at $25.07.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.