Public Storage heralds new issue, redemption; new issues from PS Business, Annaly trade at par

By Stephanie N. Rotondo

Phoenix, Sept. 10 - The preferred stock market began the week on the quiet side, according to a trader, though a new deal from Public Storage was getting some attention.

Public Storage announced plans to sell at least $200 million of series V cumulative perpetual preferred shares of beneficial interest.

Price talk is 5.375% to 5.5%, according to a trader. Pricing is expected Tuesday.

Meanwhile, both PS Business Parks Inc.'s $200 million of 5.75% series U cumulative perpetual preferred shares and Annaly Capital Management Inc.'s new $400 million of 7.5% series D cumulative redeemable perpetual preferreds were seen trading around par.

Public Storage to price

Public Storage plans to sell at least $200 million of series V cumulative perpetual preferreds, the company said in a regulatory filing on Monday.

A trader said the issue was trading in a $24.60 to $24.65 context in the gray market as of midday.

"It's a pretty low coupon for not having a DRD on it," said the trader, who believes the issue will probably come around 5.4%.

Another trader said after the bell that paper was around $24.65 in the gray market.

"It should price tomorrow," he said.

The Glendale, Calif.-based real estate investment trust will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "PSAPV."

The joint bookrunning managers are Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used to redeem all $247.3 million of outstanding 6.45% series F cumulative preferreds. Any remaining funds will be used for general corporate purposes, which might include investments in self-storage facilities and the redemption of other preferred issues.

The series Fs (NYSE: PSAPF) last traded on Friday at $25.74.

PS Business, Annaly hit par

New issue from last week were seen trading around par on Monday.

PS Business Parks' new 5.75% series U preferreds, which priced Wednesday, were seen trading around par at midday.

Another trader also placed the issue at par by day's end.

Annaly Capital Management's new 7.5% series D cumulative redeemable perpetual preferreds, which priced Thursday, were offered at $24.97, a trader said midafternoon.

A second source said that the Annaly issue was trading at par at the bell.

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