Teekay sells upsized $125 million units offering; Colony Capital greenshoe exercised

By Stephanie N. Rotondo

Phoenix, April 13 – Preferred stocks were inching up in early Monday trading but ultimately ended the day with a weaker tone.

The Wells Fargo Hybrid and Preferred Securities index closed down 9 basis points, though it was up 3 bps at mid-morning.

The primary space saw one deal added to the calendar, as Teekay Offshore Partners LP announced a sale of series B cumulative redeemable preferred units.

Pricing came after the close, with the offering being upsized to $125 million from $75 million. The units came at par to yield 8.5%.

Initial price talk was 8.5% to 8.625%, according to a trader.

Earlier in the month, the Hamilton, Bermuda-based oil transportation company declared a distribution on the series A units of 45.31 cents. The distribution will be payable May 15.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC ran the books.

Meanwhile, Colony Capital Inc.’s $250 million issue of 7.125% series C cumulative redeemable preferreds – a deal priced late Wednesday and freed on Thursday – held steady in the first trading day of the week.

The Colony paper ended the day unchanged at $24.90.

On Monday, the company said it had fully exercised its greenshoe, lifting total issuance to $287.5 million.

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