Morning Commentary: DuPont Fabros, GATX add new deals to calendar; more expected to come

By Stephanie N. Rotondo

Seattle, May 9 – The preferred stock market’s primary space was going all in as the new week began.

The calendar saw two new deals being added, one from DuPont Fabros Technology Inc. and one from GATX Corp.

For its part, DuPont said it was selling at least $100 million of series C cumulative redeemable preferred stock, the proceeds of which would be used to redeem its outstanding series A and B preferreds.

A trader said price talk was 6.75% to 7%. He saw the issue quoted at $24.75 bid, $24.85 offered in the early gray market, though that soon moved up to $24.85 bid.

“That should do well,” he said.

As for the 7.875% series A cumulative redeemable preferreds (NYSE: DFTPA), those were off 13 cents at $25.27. The 7.625% series B cumulative redeemable preferreds (NYSE: DFTPB) were down 9 cents at $25.37.

Stifel Nicolaus & Co. Inc., Raymond James, Goldman Sachs & Co. and RBC Capital Markets are the joint bookrunners. Co-managers include Baird, Credit Suisse Securities (USA) Inc., Evercore ISI, KeyBanc Capital Markets and TD Securities.

GATX meantime said it was selling at least $100 million of $25-par senior notes due 2066.

Price talk is around 5.75%, according to a source.

A trader said he had yet to see any market on that deal.

BofA Merrill Lynch and Morgan Stanley & Co. LLC are running the books.

Looking ahead, a trader said he was “hearing a bunch of deals for this week,” though aside from DuPont and GATX, he didn’t have any specific names.

© 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.