Colony NorthStar’s new deal frees to trade; Public Storage trading under temporary ticker

By Stephanie N. Rotondo

Seattle, May 25 – The preferred stock market was little moved in Thursday trading as a trader noted that liquidity was slowing down ahead of the long holiday weekend.

“It’s going to be dead,” he said of Friday’s session, given that market players will be rushing out to begin celebrating Memorial Day.

Still, deals that priced during the week remained in play.

Colony NorthStar Inc.’s $300 million of 7.15% series I cumulative redeemable preferred stock freed from the syndicate at 11 a.m. ET, a trader said.

Just ahead of freeing, the trader saw the issue quoted at $24.92 bid, $24.97 offered.

At the close, a market source placed the preferreds at $24.95, “which is a fair level for them for the day.”

Yet another source agreed with that level, calling the paper off 2 cents from the previous session.

The deal priced on Wednesday, coming upsized from $100 million and tight to the 7.25% price talk.

The issue is trading under a temporary ticker, “CLNYP.”

The new issue clearly dominated the trading day, with almost 2.59 million shares being exchanged.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC ran the books.

From Tuesday’s business, Public Storage’s $250 million of 5.15% series F cumulative preferreds were seen closing at $24.70, a loss of a dime.

A source noted that the volume weighted average price was $24.7782.

Earlier in the day, the paper was quoted at $24.75 bid, $24.95 offered.

Nearly 700,000 of the preferreds traded during the session.

That deal was also upsized from $100 million. Price talk was 5.25%.

BofA Merrill Lynch, Morgan Stanley, UBS Securities and Wells Fargo Securities LLC were the joint bookrunners.

Also from Tuesday, B. Riley Financial Inc.’s $52.5 million of 7.5% $25-par notes due 2027 had freed to trade, according to a market source.

At the bell, the notes were seen at $24.62.

However, a source noted that the day’s VWAP was $24.6783.

At mid-morning, a source pegged the paper in a $24.65 to $24.75 context.

The issue, which was increased from a planned $25 million, was talked at 7.5%.

FBR Capital Markets, B. Riley, Wunderlich Securities Inc. and Incapital LLC led the deal.

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