Spark preferreds down; Global Medical REIT up; Fannie and Freddie see high volume

By Abigail W. Adams

Portland, Me., Jan. 24 – After a flurry of new deals that priced last week, the primary market has been much quieter this week.

Global Net Lease, Inc. has yet to price the add-on to its $25-par 7.25% series A perpetual cumulative redeemable preferred stock announced on Monday.

In one deal that did succeed in coming to market, Spark Energy, Inc.’s 8.75% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were down on Wednesday after the Houston, Texas-based retail energy services company priced an add-on after the market close on Tuesday.

Global Medical REIT’s 7.5% perpetual series A cumulative redeemable preferred stock reached par in large gains early in the session. But the $25-par preferreds lost footing and dipped below par as Wednesday’s session progressed, although they were still higher on the day at the market close.

Freddie Mac’s 8.375% non-cumulative perpetual convertible preferred stock and Fannie Mae’s 8.25% series S preferred stock both saw losses in heavy volume trading. Freddie Mac’s 8.375% preferreds saw almost double their average trading volume.

Add-ons

Global Net Lease still has not priced the add-on to its $25-par 7.25% series A preferreds announced on Monday.

The New York-based real estate investment trust sold $106 million of its series A preferred stock in the initial pricing of the offering in September 2017 and an additional $28.75 million in a reopening in December.

The preferreds are listed on the New York Stock Exchange under the symbol “GNLPrA.” The preferreds slipped 5 cents, or 0.2%, to end the day at $24.85.

Spark’s 8.75% series A preferreds lost ground on Wednesday, the first trading day since the Houston-based retail energy services company priced an add-on.

Spark priced a $50.5 million, or 2 million share, add-on to the $25-par preferred stock at a public offering price of $25.25 after the market close Tuesday.

The preferred stock was initially priced in March 2017 with $35 million sold. Additional preferreds have been issued through an at-the-market program, raising the total to $42.6 million.

The preferred stock is listed on Nasdaq under the ticker “SPKEP.”

In trading, the preferreds slipped 54 cents, or 2.14%, to $24.75 at the market close.

Global Medical

Global Medical REIT’s 7.5% perpetual series A cumulative redeemable preferred stock reached par in large gains in early trading on Wednesday.

The $25-par preferreds were up 27 cents, or 1.09%, to $25 early in the session.

Global Medical priced the series A preferred stock in September 2017. While the preferreds ended the day below par, they still made gains.

The preferreds from the Bethesda, Md.-based real estate investment trust focused on the acquisition of healthcare facilities gained 7 cents, or 0.28%, to $24.8 at market close Wednesday.

Freddie, Fannie in focus

The embattled preferreds of Freddie Mac and Fannie Mae remained in focus Wednesday as some movement occurred on Capitol Hill about the government-sponsored entities’ futures.

Freddie Mac’s 8.375% preferreds, which trade on the OTC market under the symbol “FMCKJ,” saw almost double their average trading volume during Wednesday’s session.

The preferreds dropped 17 cents, or $2.37%, to $7 at the market close.

Fannie Mae’s 8.25% series S preferred stock, which trades on the OTC market under the symbol “FNMAS,” dropped 12 cents, or 1.66%, to $7.12.

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