Preferreds soften in thin holiday trading; Energy Transfer active; financials mixed

By Cristal Cody

Tupelo, Miss., April 18 – Preferred stocks overall remained weak at the market’s opening and stayed soft on Thursday in light holiday trading.

The Wells Fargo Hybrid and Preferred Securities index ended off 0.12%.

The U.S. iShares Preferred Stock ETF declined 0.19% to $36.55.

In secondary trading, Energy Transfer Operating, LP’s preferred stock was mixed on Thursday following the company’s $700 million sale of $25-par series E fixed-to-floating rate cumulative redeemable perpetual preferred units in the previous session.

The preferred units (Ba2/BB/BB), which priced Wednesday with a 7.6% initial dividend, were quoted down 2 cents, or 0.08%, in over-the-counter trading at the start of the session after opening at $25.05.

The units dropped 15 cents, or 0.6%, to end the day at $24.90.

The Dallas-based natural gas midstream and intrastate transportation and storage company plans to apply to list the units on the New York Stock Exchange under the symbol “ETPPrE”.

Energy Transfer sold 28 million shares of the preferred units, which will reset May 15, 2024 to a floating rate of Libor plus 516.1 basis points.

Meanwhile, financial preferred stocks were mixed on Thursday following first-quarter earnings releases by the big banks over the past week.

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