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Goldman prices $1.5 billion preferreds tighter than talk; preferreds soften; Teekay better
By Cristal Cody
Tupelo, Miss., Oct. 18 – Goldman Sachs Group Inc. sold $1.5 billion of 5% depositary shares at par on Wednesday, tighter than initial price talk in the 5.25% area.
The shares are not expected to be listed on an exchange.
Preferred shares mostly were softer on the day.
The Wells Fargo Hybrid and Preferred Securities index closed down 1 basis point.
The U.S. iShares Preferred Stock ETF ended off 8 bps.
In trading, Teekay LNG Partners LP’s $150 million of 8.5% series B fixed-to-floating-rate cumulative redeemable perpetual preferred units priced on Monday and freed to trade on Tuesday closed up 7 cents, or 0.28%, to $25.04.
The preferreds were issued the temporary symbol “TKYYF.”
The distribution rate on the preferreds will convert to a floating rate equal to Libor plus a spread of 624.1 bps per year per $25.00 of liquidation preference per unit from Oct. 15.
Goldman Sachs prices at par
Goldman Sachs Group sold $1.5 billion of 5% depositary shares at par on Wednesday, tighter than initial price talk in the 5.25% area, according to a market source.
The coupon has a fixed rate through Nov. 10, 2022, then the rate will convert to a floating rate of Libor plus 287.4 bps.
The shares each represent 1/25 of an interest in a share of series P fixed-to-floating rate non-cumulative preferred share, according to an 8-K and prospectus filed with the Securities and Exchange Commission.
Goldman Sachs & Co. was the bookrunner. The deal includes a 30-day over-allotment option.
The securities will not be listed on an exchange.
Proceeds will be used to redeem some or all of the company’s 5.95% series I preferreds and for general corporate purposes, including the potential redemption of some or all of the company’s 6.2% series B preferreds.
Goldman Sachs Group is a New York-based banking, securities and investment management company.
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