Morning Commentary: Rexford Industrial plans new issue; telecom deal rumored; recent deals active

By Stephanie N. Rotondo

Seattle, Aug. 8 – The preferred stock market got the week started with a new issue on Monday.

Rexford Industrial Realty Inc. said it was selling $75 million of series A cumulative redeemable preferreds via BofA Merrill Lynch and Wells Fargo Securities LLC.

Price talk is 6%, a market source said.

A trader said he hadn’t seen much in the deal, citing the pricing expectations, the fact that the deal is not eligible for the Qualified Dividend Income or Dividend Received Deduction and that it was nonrated.

Looking ahead, the trader said that in addition to the Rexford announcement, there were rumors that a telecom deal was in the works for later in the week.

As for last week’s new issues, Seaspan Corp.’s $225 million of 7.875% series H cumulative redeemable preferreds were pegged at $24.65 bid, $24.72 offered.

That issue priced Thursday and freed to trade on Friday.

Medley LLC’s $25 million of 6.875% $25-par unsecured notes due Aug. 15, 2026, however, were still not free, a trader said.

That issue also priced Thursday.

The trader quoted the notes around $24.65.

Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due Sept. 15, 2056 – a deal from Wednesday – were meantime seen at $24.98 bid, par offered.

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