Duke Realty to redeem preferreds; State Street deal trades above par; Public Storage rises

By Stephanie N. Rotondo

Phoenix, Nov. 25 – Preferred stocks were again on the firm side Tuesday, even as liquidity dwindled ahead of the Thanksgiving holiday.

The Wells Fargo Hybrid and Preferred Securities index was up 5 basis points at the bell.

Late Monday, Duke Realty Corp. announced a redemption of its nearly $15 million of 6.5% series K cumulative redeemable preferreds (NYSE: DREPK).

Holders will receive par plus 10.8333 cents of accrued and unpaid dividends on Dec. 24.

Come Tuesday trading, the preferreds were initially trading up a penny at $25.10 but ended down 3 cents at $25.07.

Meanwhile, recent deals continued to be in focus.

State Street Corp.’s $750 million of 6% series E fixed-rate noncumulative perpetual preferreds that priced Nov. 18 moved above par, according to a trader.

He quoted the issue at $25.02 bid, $25.05 offered.

The preferreds closed the day at $25.03, up 9 cents on the day. Paper opened the day at $24.92.

Public Storage’s $175 million of 5.875% series A cumulative perpetual preferreds were then seen at $24.68 bid, $24.75 offered.

The issue closed at $24.72, up 7 cents on the day.

A trader noted that the issue was trading “basically where the other Public Storage issues trade.” He also remarked that the deal included no tax breaks and that the deal was priced aggressively.

“It’s total retail; you don’t see a lot of institutional in it,” he said.

© 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.