Morning Commentary: Discover, CIM Commercial in deal pipeline; preferreds mostly unchanged

By Cristal Cody

Tupelo, Miss., Oct. 26 – Two companies announced deals early Thursday in the preferred stock primary market.

Discover Financial Services, Inc. plans to price depositary shares that each represent 1/100th interest in a share of series C fixed-to-floating rate non-cumulative perpetual preferred stock.

CIM Commercial Trust Corp. intends to price up to 900,000 series L units that consist of 9 million shares of its series L preferred stock. Each unit will hold 10 shares of the series L preferreds.

The preferreds will have an initial stated value of 100 Israeli new shekels, which will be converted to U.S. dollars at the initial exchange rate.

Overall, preferred shares were flat to modestly better after weakening on Wednesday.

The Wells Fargo Hybrid and Preferred Securities index was up less than 1 basis point early in the session.

The U.S. iShares Preferred Stock ETF was mostly unchanged.

In early trading, Golar LNG Partners LP’s $120 million of 8.75% series A perpetual cumulative redeemable preferred units that priced on Tuesday were flat at $24.90.

The preferreds were issued the temporary symbol “GOLPF” on Wednesday.

Golar LNG Partners sold $120 million of the preferred units on Tuesday at $25.00 per unit.

The Hamilton, Bermuda-based owner and operator of liquid natural gas carriers will apply to list the preferred units on the Nasdaq Global Select Market under the symbol “GMLPP.”

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