Morning Commentary: Preferreds generally mixed in light trading; Scorpio Tankers admitted to NYSE

By Christine Van Dusen and Stephanie N. Rotondo

Atlanta, Nov. 6 – Scorpio Tankers Inc.’s new issue of $25-par notes started trading on the New York Stock Exchange on Thursday morning while many other preferred issues saw light volumes.

The Monaco-based container ship company’s $45 million of 7.5% $25-par senior notes due Oct. 15, 2017 – which priced on Oct. 28 – began trading with the symbol “SBNB.”

Stifel, Nicolaus & Co. Inc., Jefferies Inc., Credit Suisse Securities (USA) LLC and Janney Montgomery Scott LLC were the joint bookrunners.

The offering has a $6.75 million over-allotment option.

Interest will be payable quarterly, beginning Jan. 15.

Upon a change of control, holders can require the company to repurchase the notes at 101% of par plus accrued interest. In the event of certain tax changes, the company can redeem the notes in whole at par plus accrued interest.

Proceeds will be used for general corporate purposes and for working capital, which may include the acquisition of new or secondhand vessels.

In other trading of preferreds on Thursday morning, ING Groep NV’s 7 3/8% perpetual hybrid capital securities were spotted up 5 cents at $25.70 on volume totaling 69,360.

Bank of America’s 6.204% noncumulative preferred stock, series D, traded down 4 cents at $25.18 on 29,459 shares.

And Barclays Bank plc’s 8 1/8% non-cumulative callable dollar preference shares, series 5 ADR, moved down a penny to $25.96 on 26,264 shares traded.

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