Preferreds soften; Golar prices $120 million preferreds; Gamco, Steel Partners improve

By Cristal Cody

Tupelo, Miss., Oct. 24 – Preferred shares were weaker on Tuesday amid new issuance.

The Wells Fargo Hybrid and Preferred Securities index dropped 7 basis points.

The U.S. iShares Preferred Stock ETF closed off 5 bps.

Golar LNG Partners LP tapped the preferred primary market on Tuesday and priced $120 million of 8.75% series A perpetual cumulative redeemable preferred units.

On Monday, Gamco Natural Resources Gold & Income Trust priced $30 million of 5.2% cumulative preferreds in a 1.2 million share offering.

The series A preferreds were freed to trade late Monday under the temporary symbol “GNGTP” and were seen ending Tuesday in over the counter trading up 2 cents, or 0.08%, to $24.85.

Several issuers have brought preferreds to the market in October, including JPMorgan Chase & Co., Teekay LNG Partners LP, Steel Partners Holdings LP and National Storage Affiliates Trust.

Teekay LNG Partners’ 8.5% series B fixed-to-floating rate cumulative redeemable perpetual preferred units closed off 2 cents, or 0.08%, at $25.00.

The Hamilton, Bermuda-based provider of marine transportation services for liquefied gas, petroleum and oil sold $150 million of the preferreds on Oct. 16. The preferreds were freed to trade on Oct. 17 and issued the temporary symbol “TKYYF.”

Steel Partners Holdings’ 6% series A preferred units (NYSE: SPLPPrA) improved 12 cents, or 0.54%, to go out at $21.32.

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