Morning Commentary: Global Ship Lease plans offering; Qwest, Citizens Financial better

By James McCandless

San Antonio, Nov. 13 – The preferred market was higher early Wednesday with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.16%.

In primary activity, Global Ship Lease, Inc. plans to price an offering of $25-par senior notes due Dec. 31, 2024 at par, according to a 424B5 filing with the Securities and Exchange Commission.

B. Riley FBR, Inc., Ladenburg Thalmann & Co. Inc., Clarksons Platou Securities AS, Janney Montgomery Scott LLC, William Blair & Co., LLC and Fearnley Securities are the joint bookrunners.

The notes are redeemable on or after Dec. 31, 2021 and prior to Dec. 31, 2022 at 102%, on or after Dec. 31, 2022 and prior to Dec. 31, 2023 at 101% and on or after Dec. 31, 2023 at par. The notes are also redeemable prior to Dec. 31, 2021 after a change-of-control event at 104%.

Leading secondary trading volume, Qwest Corp.’s 6.5% notes due 2056 were active but unmoved as the day started.

The notes (NYSE: CTBB) were level at $25.46 on volume of about 430,000 notes.

Meanwhile, in the finance space, Citizens Financial Group, Inc.’s 5% series E fixed-rate non-cumulative perpetual preferred stock was improving.

The preferreds (NYSE: CFGPrE) were gaining 6 cents to $25.00 with about 67,000 shares trading.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was following the positive trend.

The preferreds (NYSE: COFPrI) were adding 13 cents to $25.00 on volume of about 53,000 shares.

Synchrony Financial’s recent 5.625% series A non-cumulative perpetual preferred stock was moving higher.

The preferreds, trading under the temporary symbol “SNFI,” were improving by 10 cents to $25.20 with about 45,000 shares trading.

Elsewhere, oil and gas name Energy Transfer Operating, LP’s 7.625% series D fixed-to-floating rate cumulative redeemable perpetual preferred units were declining.

The preferreds (NYSE: ETPPrD) were losing 10 cents to $24.73 on volume of about 49,000 shares.

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