Diana Shipping brings upsized new issue; Seaspan does 'well'; recent deals catch a bid

By Stephanie N. Rotondo

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

The Athens, Greece-based dry bulk shipper sold $60 million series B cumulative redeemable perpetual preferred stock at 8.875%, the low end of the 8.875% to 9% price talk.

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.

Seaspan closed at $24.65 bid, according to a trader who said the issue "did well." Another market source pegged the paper at $24.80, unchanged on the day.

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

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

Later in the day, the Diana Shipping preferreds were seen trading around $24.60 by one trader.

Morgan Stanley & Co. LLC, UBS Securities LLC and Deutsche Bank Securities Inc. led the deal. Co-managers were 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. By the end of the day, it was up 22 bps.

Recent deals rally

JPMorgan Chase & Co.'s $850 million issue of 6.7% series T noncumulative preferreds (NYSE: JPMPB) "improved on the board," a trader said, after the issue listed on the New York Stock Exchange on Friday.

The deal priced Jan. 23.

The issue closed at $24.90, up a penny.

As for other recent deals, Verizon Communications Inc.'s $500 million of 5.9% $25-par notes due 2054 "caught a bid," the trader said, seeing the issue at $24.70.

Earlier in the day, another trader had seen the paper at $24.85.

Citigroup Inc.'s $480 million of 6.875% series L noncumulative perpetual preferreds - a deal that priced Wednesday - was also moving up, with a trader quoting the issue at $24.65 bid, $2470 offered. Another source placed the shares at $24.72, up 2 cents from Friday's close.

Though about 501,000 shares changed hands, investors continued to focus on Citigroup's 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK). That issue saw trading of over 5 million shares, rising a penny to $25.25.

American Realty active

American Realty Capital Properties Inc.'s 6.7% series F cumulative redeemable preferreds (Nasdaq: ARCPP) traded actively Monday as the company held a conference call to discuss some recent transactions.

The preferreds finished the day at $21.55, down a penny, on over 1.06 million shares traded.

In particular, the New York-based real estate investment trust wanted to fill in investors on a recent $2.55 billion offering of senior unsecured notes, as well as its recent acquisition of Cole Real Estate Investments Inc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.