Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Review > Headlines for 2016 > News item |
Morning Commentary: Entergy Arkansas offers $25-par first mortgage bonds; Rexford deal upsized
By Stephanie N. Rotondo
Seattle, Aug. 9 – The preferred stock market’s new issue pipeline remained open on Tuesday as Entergy Arkansas Inc. announced plans to sell $25-par first mortgage bonds.
Additionally, Rexford Industrial Realty Inc. priced series A cumulative redeemable preferreds. The offering was announced on Monday.
The Entergy deal is being led by Wells Fargo Securities LLC and is being talked around 4.875%, according to a market source.
A trader said there was no selling group.
“It’s small,” he said of the proposed $200 million offering. “The coupon is a little rich for my blood.”
He saw the issue at $24.80 bid in the early gray market.
Meanwhile, Rexford came with $90 million of 5.875% cumulative redeemable preferreds.
When the transaction was first announced on Monday, price talk was 6% and the size was slated to be $75 million.
BofA Merrill Lynch and Wells Fargo led the sale.
A trader said the paper was bid at $24.90 at mid-morning.
The Los Angeles-based real estate investment trust will contribute proceeds to the operating partnership in exchange for series A preferred units. The operating partnership will then use the funds for potential acquisitions and for general corporate purposes.
© 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.