Preferred stocks mixed over session; Teekay frees to trade; Steel Partners improves

By Cristal Cody

Tupelo, Miss., Oct. 17 – Preferreds remained mixed over Tuesday’s session after softening on Monday.

The Wells Fargo Hybrid and Preferred Securities index gained 6 basis points.

The U.S. iShares Preferred Stock ETF ended 3 bps weaker.

The primary market has picked up with new issuance from JPMorgan Chase & Co. on Friday and Teekay LNG Partners LP on Monday.

Teekay’s $150 million of 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred units freed to trade on Tuesday. The preferreds were issued the temporary symbol “TKYYF”.

Teekay’s 8.5% preferreds closed unchanged at $24.97.

The distribution rate on the preferreds will convert to a floating rate equal to Libor plus a spread of 624.1 basis points per year per $25.00 of liquidation preference per unit from Oct. 15, 2027.

In other new issue trading, Steel Partners Holdings LP’s new 6% series A preferred units closed up 50 cents, or 2.44%, to $21.00.

The preferred units due Feb. 7, 2026 started trading on Monday on the New York Stock Exchange under the temporary symbol “SPLPPrT”.

The New York City-based diversified holding company issued the preferreds as part of an exchange for shares of Handy & Harman Ltd. that expired on Oct. 12.

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