Preferreds jump; new Teekay 8.5% preferred units improve; Steel Partners, Annaly dip

By Cristal Cody

Tupelo, Miss., Oct. 20 – Preferreds soared on Friday with the Wells Fargo Hybrid and Preferred Securities index up 44 basis points on the day.

The U.S. iShares Preferred Stock ETF climbed 23 basis points over the session.

Teekay LNG Partners LP’s $150 million of 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred units that priced on Monday and freed to trade on Tuesday under temporary symbol “TKYYF” ended the day a dime better at $25.00.

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

Steel Partners Holdings LP’s 6% series A preferred units due Feb. 7, 2026, which started trading Monday on the New York Stock Exchange under the temporary symbol “SPLPPrT,” dropped 39 cents to close at $20.45.

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.

In other trading, Annaly Capital Management Inc.’s 6.95% series F cumulative redeemable preferreds (NYSE: NLYPrF) remain active but closed off 7 cents at $26.40.

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