Seaspan comes upsized; Medley’s $25-par notes finally price; Legg Mason, Landmark free up

By Stephanie N. Rotondo

Seattle, Aug. 4 – The preferred stock new issue pipeline showed no signs of letting up on Thursday, as Seaspan Corp. added a deal to the calendar.

The Hong Kong-based shipping company said it was selling $75 million of series H cumulative redeemable preferreds, with price talk in an 8% to 8.125% range. The deal priced before the close, coming upsized at $225 million.

The issue priced at par to yield 7.875%.

A trader saw the issue at $24.82 bid, $24.92 offered in the early gray market.

As the new issue was being shopped, the company’s 8.2% series G cumulative redeemable preferreds (NYSE: SSWPG) traded down 57 cents, or 2.18%, to $25.52, on above-average trading volumes.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC and Citigroup Global Markets Inc. are running the books.

Proceeds will be used for general corporate purposes.

Meanwhile, a trader commented that Medley LLC’s $25 million sale of $25-par unsecured notes due Aug. 15, 2026 would come around midday, “or so I was told.”

The offering – which was first announced on Tuesday and was expected to price on Wednesday –did in fact price, but not until the market closed.

The issue came at par to yield 6.875%, in line with initial price talk.

Of issues that have already priced, Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due 2056 freed up at mid-morning, according to a trader.

Just prior to freeing, a trader saw the paper at $24.95 bid, par offered.

At the close, a market source said the paper was at $25.32. However, he noted that the volume weighted average price of $25.01 was probably more accurate.

Landmark Infrastructure Partners LP’s $40 million of 7.9% series B cumulative redeemable preferred units were also pegged at $24.95 bid, par offered in early trading.

Like Legg Mason, the units were seen closing near the highs of the day, though the VWAP was deemed the better price level.

A source said the units ended at par, but placed the VWAP at $24.965.

The units freed from the syndicate early in the day.

“It’s done better than I thought,” a source said.

Both issues came Wednesday and both were upsized.

© 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.