Public Storage on tap; Chimera brings upsized deal; Deutsche Bank paper in focus again

By Stephanie N. Rotondo

Seattle, Oct. 6 – The preferred stock primary market was hopping on Thursday, with two new deals added to the calendar.

Public Storage announced plans to sell $100 million of series E cumulative preferreds.

Price talk was 4.9%, according to a market source.

A trader saw the issue at $24.60 bid, no offers in the early gray market, though that soon moved up to $24.80 bid.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are running the books.

The deal had not priced as of press time.

Chimera Investment Corp. also commenced a deal, a $75 million offering of series A cumulative redeemable preferreds.

Price talk on the non-rated deal was 8% to 8.125%, a source said.

The deal was later upsized to $135 million, coming at par to yield 8%.

Morgan Stanley, UBS, Keefe Bruyette & Woods Inc. and RBC Capital Markets are the bookrunners.

Meanwhile, Deutsche Bank AG once again topped trading in the secondary, as chatter was that German blue-chip companies were discussing a capital injection into the bank.

Deutsche Bank’s trust preferreds were mostly lower, though modestly so.

The 6.55% trust preferred securities (NYSE: DXB) slipped 4 cents to $23.08, while the 7.6% TruPS (NYSE: DTK) declined a nickel to $24.20.

The 8.05% TruPS (NYSE: DKT) firmed 3 cents to $24.86.

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