Retail Properties sells preferreds to yield 7%; Seaspan's issue frees; Duke Realty active

By Stephanie N. Rotondo

Phoenix, Dec. 11 - Though the primary preferred market is expected to be in slowdown mode as the end of the year approaches, one new deal was announced on Tuesday.

Retail Properties of America Inc. said it intended to sell series A cumulative redeemable perpetual preferred stock. Price talk was around 7%, according to a trader.

The deal came after the close, with $125 million shares being sold to yield 7%.

Meanwhile, Seaspan Corp.'s $67.5 million of 7.95% series D cumulative redeemable perpetual preferreds - a deal that came Thursday - freed to trade early Tuesday.

Despite word of the new issue, it was "not a hugely busy day," a market source said. "Most things were flat-ish."

Retail Properties on tap

Retail Properties of America announced and then priced an offering of $125 million of 7% series A cumulative redeemable preferreds.

"It looks fine," a trader said ahead of pricing, noting that it was "an unrated [real estate investment trust]" with a "decent coupon."

Talk is around 7%, he said.

He saw the issue trading at $24.75 in the gray market as of midday.

Another market source said he had not seen much goings-on in the paper, however, adding that it was a "pretty small" deal.

Seaspan frees up

Seaspan's new 7.95% series D cumulative redeemable preferreds freed from the syndicate early Tuesday, according to a trader.

The issue moved up after freeing to $24.80, the trader reported at midafternoon.

The deal had priced on Thursday.

At the close, a market source said the preferreds were among the most actively traded, calling the issue down a dime at $24.75.

Seaspan is a Hong Kong-based containership company.

Duke active ahead of dividend

Duke Realty Corp.'s 8.375% series O cumulative redeemable preferred shares were dominating the day's trading session, as investors prepared for the paper to go ex-dividend on Wednesday.

Though the shares were the most actively traded with about 670,000 shares changing hands, the securities (NYSE: DREPO) closed unchanged at $25.74.

The Indianapolis-based real estate investment trust will pay a dividend of 5.234 cents per share on Dec. 31.

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