Global Net Lease to reopen 7.25% preferreds; Jernigan hits the market; Fannie Mae nosedives

By Abigail W. Adams

Portland, Me., Jan. 22 – There were no new deals that priced in the primary market on Wednesday. However, Global Net Lease, Inc. announced that it is reopening its $25-par perpetual 7.25% series A cumulative redeemable preferred stock.

The preferred stock was issued in September and December of 2017, selling $106.49 million and $28.75 million respectively.

There are currently 5,409,650 shares of the series A preferred stock outstanding, according to the prospectus supplement.

The New York-based real estate investment trust’s series A preferred stock is listed on the New York Stock Exchange under the symbol “GNLPrA.”

The existing preferreds were down by 2 cents, or 0.08%, to $24.76 at market close on Monday.

The secondary market was mixed on Monday. The Wells Fargo Hybrid & Preferred Securities Financial Index was up 15 bps in early trading, but lost steam throughout the session. The Index was up by 6 bps at the market close.

The iShares US Preferred Stock ETF was also up by 0.10% in early trading but lost steam to end the day down by 0.03%.

Jernigan Capital, Inc.’s 7% series B cumulative redeemable perpetual preferred stock hit the market Monday after pricing after market close Friday.

The preferred stock freed for OTC trading shortly after pricing under the temporary symbol “JERCP.”

The preferred stock was quoted at $24.75 with no bids or offers early in Monday’s session. The preferred stock traded in a range of $24.60 to $24.82 before ending the day at $24.73.

Jernigan sold $37.5 million, or 1.5 million shares, of 7% series B cumulative redeemable perpetual preferred stock at par of $25 after the end of trading on Friday.

The pricing came at the cheap end of talk for a dividend of 6.75% to 7% and smaller than the initially launched 2 million share deal size.

Ashford Hospitality Trust, Inc.’s series H and series G preferred stock both lost ground during Monday’s session. The 7.5% series H cumulative redeemable preferred stock was down. The series H preferred stock slipped 58 cents, or 2.35%, to $24.07 in early trading.

Ashford’s 7.375% series G cumulative preferred stock also slipped 45 cents, or 1.83%, to $24.10.

While Ashford’s preferreds were down, their losses were eclipsed by Fannie Mae’s 8.25% series S and 8.25% series T preferreds.

Fannie Mae’s 8.25% series S fixed-to-floating rate non-cumulative preferred stock saw heavy trading volume during Monday’s session.

The series S preferreds were down 43 cents, or 5.45%, to $7.46 at market close.

Fannie Mae’s 8.25% series T non-cumulative preferred stock also saw heavy volume trading.

The preferreds were down 31 cents, or 3.94%, to $7.55 at market close.

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