Preferreds down; CAI offering on tap; 1347 Property Insurance lists; NGL Energy up

By Abigail W. Adams

Portland, Me., March 22 – The preferreds secondary market was down alongside equity markets on Thursday as the primary market readies a new deal.

CAI International, Inc. planned to price $25 million of $25-par perpetual series A fixed-to-floating rate cumulative redeemable preferred stock after the market close on Thursday with price talk for an initial dividend in the 8.5% area.

The deal had not yet priced as of press time.

CAI’s offering is the second preferred stock offering of the week which also saw the pricing of a new baby bond deal.

W.R. Berkley Corp.’s recently priced 5.7% baby bonds again traded above par on Thursday but closed the day below their $25-par issue price.

The Wells Fargo Hybrid & Preferred Securities Financial index closed Thursday down 0.13%. The U.S. iShares Preferred Stock ETF was down 0.32%.

1347 Property Insurance Holdings Inc.’s recently priced 8% series A perpetual cumulative preferred stock is now listed for trade on the Nasdaq under the ticker “PIHPP.”

However, the listing did little to improve the status of the struggling preferreds.

While the broader market was down, NGL Energy Partners LP’s 9% class B fixed-to-floating rate cumulative preferred units saw large gains, breaking past their $25 liquidation preference and setting a new 52-week high.

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