LNG Shipper Dynagas Prices New Preferred Units

Dynagas LNG (NYSE:DLNG) has priced their new preferred units with an initial coupon of 8.75% which will be applied until 2023. After this point in time the coupon will float at a rate of 3 month Libor plus a spread of 5.593%.

The company is selling 2.2 million units plus another 330,000 available for overallotments.

The pricing term sheet can be found here.

The issue will trade on the OTC Grey market under the ticker DGAGF starting sometime today (Wednesday).  The permanent ticker will be DLNG-B when it moves to the big board.

8 thoughts on “LNG Shipper Dynagas Prices New Preferred Units”

  1. beware — Fidelity is charging a $50 foreign service fee. Re-entered the A series in August, they didn’t add that kicker then. I am going to make a hot phone call to their fixed income desk.

    1. Hi D–never had Fido or eTrade try that on me that I remember–always seems to be a hit and miss charge–always grubbing to extract your last dollar.

    2. Vanguard doing the same $50 fee. From experience Vg never adds such fees unless it’s a real out-of-pocket cost.

      In spite of 8.75 coupon it’s trading well down. Very few new issues not tanking. It’s a good sign 🙂

  2. Picked up 700 shares this morning at $24.69 and was told by Fidelity there would be an extra $50 fee.

    1. Irritating, but if you are a buy and hold person probably worth it–for a flip it kind of takes the profit out of the trade.

      1. I was just using the DLNG preferred to replace some GSLprB because GSL seems too unstable compared to DLNG. They’re in my stock account where I plan to hold long term using the 8+% yield to fuel future stock buys in other areas. I find shipping stocks so volatile that I only invest in their preferreds. I sleep better that way.

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