Ventas Realty sells upsized note offering; LaSalle Hotel frees to trade; JPMorgan listed

By Stephanie N. Rotondo

Phoenix, Feb. 28 - The last day of February saw another new issue hit the preferred stock tape as Ventas Realty LP announced plans for a sale of at least $150 million of senior notes due 2043.

Price talk was originally 5.5% to 5.675% but was revised to around 5.5%, according to a trader. The deal came after the close at par to yield 5.45% with $225 million being sold.

In other recent issues, LaSalle Hotel Properties' new $100 million of 6.375% series I cumulative redeemable preferreds - a deal that priced Wednesday - was "holding up just fine," a trader reported.

The issue freed to trade around midday, after pricing on Wednesday.

And, J.P. Morgan Chase & Co.'s $850 million issue of 5.45% series P noncumulative perpetual preferreds listed on the New York Stock Exchange on Thursday.

The deal priced Jan. 29.

In the secondary, a trader noted that Fannie Mae and Freddie Mac preferreds have been on the rise of late. He attributed the gains to an improving housing market and not anything political.

Also, the trader said that there was "a little more action" in Sears Holding Corp.'s unlisted preferreds - a 7% note due 2042 and a 7.4% note due 2043.

The trader said "bad earnings" were the cause of the increased interest.

Ventas prices, comes upsized

Ventas Realty announced and then priced an offering of $25-par senior notes due 2043 on Thursday.

Price talk was originally 5.5% to 5.675% but was revised to around 5.5%, according to a trader. Final pricing was $225 million - up from $150 million - at par to yield 5.45%.

"It really means nothing," the trader said of the revision. "They always price at the low end."

"I don't think I've ever seen a preferred out of them before," he added.

The trader saw the issue at $24.70 bid in the midday gray market, down from an earlier high of $24.78 bid.

At the close, a market source pegged the issue at $24.90 bid, no offers.

Ventas is a Chicago-based real estate investment trust.

LaSalle frees up

LaSalle Hotel Properties' newly priced 6.375% series I cumulative redeemable preferreds freed to trade around midday on Thursday.

The issue priced on Wednesday.

At midday, a trader quoted the issue at less 20 cents bid, less 8 cents offered. After the bell, a source saw the paper at $24.85 bid.

The Bethesda, Md.-based real estate investment trust will use proceeds from the offering for one or more purposes, including the redemption of its 7.25% series G preferred shares, to reduce amounts outstanding under a senior unsecured credit facility and/or for future acquisition, working capital and general corporate purposes.

JPMorgan admitted to NYSE

JPMorgan's 5.45% series P noncumulative perpetual preferreds hit the NYSE on Thursday, listing under the symbol "JPMPA."

The issue was among the day's busiest, with more than 500,000 shares changing hands.

The securities traded up a nickel to $24.93.

The New York-based financial institution priced the $850 million deal on Jan. 29.

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