Federal Realty prices upsized issue; Investors Real Estate on deck; Georgia Power lists

By Stephanie N. Rotondo

Seattle, Sept. 25 – The preferred stock market had two new deals added to the calendar on Monday, one of which priced shortly after the bell.

Both deals were from real estate investment trusts. A trader said neither issue had many gray markets in mid-morning trading.

First up, Federal Realty Investment Trust brought $150 million of 5% series S cumulative redeemable preferred stock.

The issue priced tighter than the 5.125% price talk and was upsized from $100 million.

A market source said the issue was quoted at $24.80 bid, $24.90 offered.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Investors Real Estate Trust also announced an offering of series C cumulative redeemable preferred stock.

Price talk is 6.5% to 6.75%.

At the bell, a source saw the preferreds offered at par. That compared to earlier quotes in a $24.87 to $24.90 context, he said.

BMO Capital Markets and Raymond James & Associates Inc. are the joint bookrunners.

Pricing details were not available as of 5:30 p.m. ET.

Investors Real Estate said it was using proceeds to redeem its $115 million outstanding 7.95% series B cumulative redeemable preferred shares (NYSE: IRETPrB). Those preferreds were down a dime at $25.05.

Meanwhile, Georgia Power Co.’s $270 million of 5% $25-par series 2017A junior subordinated notes due 2077 began trading on the New York Stock Exchange on Monday.

The ticker symbol is “GPJA.”

Paper was trading at $25.05 at the end of the session, up a nickel.

The deal priced Sept. 18.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities and Wells Fargo ran the books.

GSEs, recent issues trade up

As for active dealings, Fannie Mae and Freddie Mac’s preferreds once again topped the list of most active securities.

However, there was no fresh news to act as a catalyst.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) added a penny to close at $7.01, with about 1.29 million shares being traded. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) were meantime up 9 cents, or 1.32%, at $6.93.

About 1.47 million of those preferreds were exchanged.

Also busy were PS Business Parks Inc.’s 5.25% series X cumulative preferreds (NYSE: PSBPrX). The issue inched up 2 cents to close at $25.12.

And, Colony NorthStar Inc.’s 7.125% series J cumulative redeemable preferreds were seen rising 7 cents to $25.10.

The company initially sold $275 million of the preferreds on Sept. 13. On Sept. 18, a $40 million greenshoe was fully exercised, bringing the total amount outstanding to $315 million.

BofA Merrill Lynch, JPMorgan, Morgan Stanley, UBS and RBC Capital Markets LLC ran the books.

The issue trades under a temporary ticker, “CNYYP.”

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