Morning Commentary: DTE quoted wide; Hersha not yet free; LaSalle, American Homes list on NYSE

By Stephanie N. Rotondo

Seattle, May 25 – The preferred stock market had a modestly firm tone early Wednesday.

“Everything is green,” a trader said.

However, the new issue pipeline was taking a break in midweek trading.

“I have heard nothing for today yet,” the trader said. “I think if we do see any deals, it’s going to be in drips and drabs, like these little [real estate investment trusts] and the odd-ball insurance company.”

As for deals from earlier in the week, DTE Energy Co.’s $300 million offering of 5.375% $25-par 2016 series B junior subordinated debentures due June 1, 2076 were pegged in a $24.90 to par context.

That issue came Monday via BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC.

From Tuesday’s business, Hersha Hospitality Trust’s $175 million of 6.5% series D cumulative redeemable preferreds were seen wide at $24.75 bid, $24.90 offered.

A trader said the paper had not yet freed as of mid-morning.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Raymond James & Associates Inc., Wells Fargo and Citigroup Global Markets Inc. ran that deal.

Meanwhile, deals priced last week by LaSalle Hotel Properties and American Homes 4 Rent began trading on the New York Stock Exchange Wednesday, as was expected.

LaSalle – priced May 18 – listed under the symbol “LHOPJ.” American Homes listed under the symbol “AMHPD.”

American Homes priced May 17.

The LaSalle issue was trading at $25.05 at mid-morning, down from opening levels of $25.07. American Homes was holding at $25.34.

© 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.