Quiet session for preferreds; Bluerock prices; UMH preferreds tick down; banks get attention

By Christine Van Dusen

Atlanta, Oct. 16 – New York's Bluerock Residential Growth REIT Inc. priced a new issue on a mostly quiet Friday morning for preferreds, which saw significant moves on Thursday night after the larger stock market rebounded.

"Today, though, it's relatively quiet," a trader said.

Among the issues that did get some attention on Friday was UMH Properties Inc.’s 8% series B cumulative redeemable preferred stock (NYSE: UMHPB) that priced at par of $25.

The preferreds traded Friday at about $24.75, the trader said.

The deal came smaller than the previously announced maximum size of up to $50 million and beyond the wide end of price talk that had been set at a dividend of 7.375% to 7.5%.

UMH sold 1,801,200 of the preferreds.

CSCA Capital Advisors LLC is the placement agent for the offering, which was announced on Oct. 5.

The company's existing 8.5% series A cumulative redeemable preferred shares dipped 8 cents to $25.86 on Friday.

In its new deal, Bluerock printed $62.5 million 8.25% series A cumulative redeemable perpetual preferred stock (NYSE MKT: BRGPA) at $25 per share, according to a company announcement.

Wunderlich Securities Inc. and Compass Point were the joint bookrunning managers. DA Davidson & Co. and Janney Montgomery Scott LLC were co-lead managers.

Dividends will be payable quarterly. Beginning October 2022, the dividend rate will increase by 200 basis points annually, up to a maximum amount of 14%.

Proceeds will be used for future investments and acquisitions and for general corporate and working capital purposes.

On Friday the new notes were seen at 101 7/8.

"Doing well," the trader said.

Banks in focus

Also getting some attention on Friday were banks, many of which released third-quarter earnings this week.

Wells Fargo & Co. saw its 6% series V class A noncumulative preferreds (NYSE: WFCPV) finish Friday at $25.90, up 14 cents.

The bank's 5.85% series Q fixed-to-floating-rate noncumulative perpetual preferreds (NYSE: WFCPQ) ended Friday at $25.60, down three cents.

In other trading of preferreds on Friday, Houston-based Targa Resources Partners LP's 9% fixed-to-floating-rate cumulative redeemable preferred units (OTC: TGARP) closed out Friday at $25, flat to Thursday.

An additional $15 million of the units were sold Wednesday via Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC. Added to the $110 million initially sold on Oct. 7, total issuance comes to $125 million.

The over-allotment option allowed for up to $16.5 million additional units to be sold.

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