Energy Transfer’s new preferreds lead market down; Hercules’ new $25-par notes lower

By James McCandless

San Antonio, April 24 – Traders reported a muted day in the preferred market as it followed the broader equities markets downward.

Energy Transfer Partners, LP’s new preferreds led the market in volume as the units traded down.

Hercules Capital, Inc., another name with a new issue, saw similar volume as the units declined.

Barclays plc’s preferreds were off after the company’s CEO came out of a regulator probe with just a fine.

Barclays’ 8.125% series 5 non-cumulative callable dollar preference shares were down 6 cents to close at $26.04.

Energy Transfer’s newly priced $450 million of series C fixed-to-floating rate cumulative redeemable perpetual preferred units led the market in volume with about 1,228,000 shares trading hands on Tuesday.

The new units come with a 7.375% dividend.

The deal was priced after the market close last Wednesday.

“It outpaced everything else, which is unusual for the overall level of activity we had today,” a trader said.

The preferreds fell 10 cents to close at $24.70.

Meanwhile, Hercules Capital’s recent pricing of $75 million of $25-par notes due 2025 was not far behind Tuesday’s volume leader with about 863,000 shares exchanged.

The new deal was priced after market close on Monday.

The 5.25% notes were off 10 cents to close at $25.55.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.