Midday Commentary: Diana Shipping plans new issue; Seaspan inching up; market starts week higher

By Stephanie N. Rotondo

Phoenix, Feb. 10 - The primary preferred stock market began the week with a new offering from Diana Shipping Inc.

The Athens, Greece-based dry bulk shipper is offering at least $50 million series B cumulative redeemable perpetual preferred stock. Price talk is 8.875% to 9%.

The deal comes on the heels of sector peer Seaspan Corp.'s $125 million of 8.25% series E cumulative redeemable preferred stock. That issue priced Thursday - coming upsized from an expected $50 million - and was trading at $24.87 early Monday.

As for the Diana Shipping issue, a trader said he saw a less 40 cents/less 13-cent gray market for the paper.

"I imagine we will see at least another deal," the trader said of the primary space. "This one is small."

Morgan Stanley & Co. LLC, UBS Securities LLC and Deutsche Bank Securities Inc. are leading the Diana Shipping deal. Co-managers are BB&T Capital Markets and Raymond James & Associates Inc.

The preferred secondary was meantime trading up early in the day. As of mid-morning, the Wells Fargo Hybrid and Preferred Securities index was up 13 basis points.

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