Morning Commentary: Preferreds start week firm; UMH plans add-on; KKR, Huntington issues list

By Stephanie N. Rotondo

Seattle, March 28 – The preferred stock market was heading higher in early Monday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 9 basis points at mid-morning.

In the primary space, UMH Properties Inc. announced plans to sell an additional $30 million of its 8% series B cumulative redeemable preferreds (NYSE: UMHPB).

The company initially sold $45.03 million of the preferreds in October 2015.

CSCA Capital Advisors LLC is acting as placement agent.

The securities were trading off 15 cents at $26.80 at mid-morning.

Also, the Gabelli Equity Trust Inc. said it planned to price $50 million of series J cumulative redeemable preferreds.

Price talk is around 5.625%, according to a market source.

UBS Securities LLC and Wells Fargo Securities LLC are running the books.

Paper was seen at $24.65 bid.

Meanwhile, KKR & Co. LP’s 6.75% series A noncumulative perpetual preferred units began trading on the New York Stock Exchange on Monday.

The ticker symbol is “KKRPA.” The $300 million issue priced March 10 and another $45 million was sold as part of a greenshoe on March 17.

The units were seen offered at $25.20, a trader said. That compared to $25.17 at the open.

Also listed Monday were Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferred stock.

Those preferreds were admitted to the Nasdaq Global Select Market under the ticker “HBANO.”

The deal came March 14.

The preferreds were pegged at $25.45 bid, $25.55 offered.

“Those moved up nicely,” a trader said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.