Hersha Hospitality comes upsized; DTE notes free to trade; LaSalle, American Homes to list

By Stephanie N. Rotondo

Seattle, May 24 – There continued to be deals coming out of the primary preferred stock market on Tuesday.

Hersha Hospitality Trust sold $175 million of 6.5% series D cumulative redeemable perpetual preferreds. The company initially announced an offering of at least $100 million of the preferreds early in the day.

Price talk was around 6.625%, according to a market source.

A trader said the paper was at $24.75 bid, no offer in the early gray market.

He added that there was no selling group.

Later in the session, but prior to pricing, another market source placed the issue in a $24.85 to $24.95 context.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Raymond James & Associates Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the non-rated deal.

Proceeds from the sale will be used to redeem the 8% series B cumulative redeemable preferreds (NYSE: HTPB). That issue was trading off 2 cents to $25.31.

From Monday’s business, DTE Energy Co.’s $300 million offering of 5.375% $25-par 2016 series B junior subordinated debentures due June 1, 2076 had freed to trade by mid-morning.

A trader quoted the issue at $24.90 bid, $24.95 offered.

At the close, a source said the notes ended at $24.94, with about 822,000 of the notes trading.

“Lots of volume,” he said.

BofA, UBS Securities LLC and Wells Fargo were the bookrunners.

Deals from last week were also seen trading.

A trader said LaSalle Hotel Properties’ $150 million of 6.3% series J cumulative preferreds were around $25.06.

That issue came May 18. It will list on the New York Stock Exchange on Wednesday under the ticker symbol “LHOPJ.”

American Homes 4 Rent’s $225 million of 6.5% series D cumulative redeemable perpetual preferred shares are also slated to hit the NYSE on Wednesday, under the ticker “AMHPD.”

That paper was at $25.25 at the bell, up a penny.

The securities priced May 17.

Meanwhile, Government Properties Income Trust’s $300 million of 5.875% $25-par senior unsecured notes due 2046 were pegged at $24.85 bid.

Government Properties came May 19.

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