DuPont Fabros, Sunstone add new deals to calendar; GATX prices; IberiaBank deal improves

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.

Later in the session, the new issue was being quoted at $24.93 bid.

As for the 7.875% series A cumulative redeemable preferreds (NYSE: DFTPA), those were off 10 cents at $25.30. The 7.625% series B cumulative redeemable preferreds (NYSE: DFTPB) were down a nickel at $25.41.

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) LLC, 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. The deal later came upsized at $150 million, pricing at par to yield 5.625%.

Price talk was initially around 5.75%, according to a source.

The notes were quoted at $24.80 in the gray market.

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

Sunstone Hotel Investors Inc. also announced plans for a new issue, though pricing was not expected until Tuesday morning. The Aliso Viejo, Calif.-based real estate investment trust said it was offering $75 million of series F cumulative redeemable preferreds, with price talk in a 6.5% to 6.625% range.

Wells Fargo Securities LLC is the bookrunner.

As the new deal was announced, the company’s 6.95% series E cumulative redeemable preferreds (NYSE: SHOPE) traded off 9 cents to $26.71.

Among deals from last week’s business, IberiaBank Corp.’s $50 million of 6.6% series C fixed-to-floating rate noncumulative perpetual preferreds were quoted at $25.43 bid, $25.50 offered at midday.

At the market’s close, the issue was seen at $25.69, up 14 cents.

The deal came May 3. It is trading under a temporary symbol, “IBRRP.”

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.

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