Morning Commentary: UMH Properties deal comes upsized, trades well; Two Harbors lists on NYSE

By Stephanie N. Rotondo

Seattle, July 21 – Preferred stock investors were eyeing the primary space early Friday, as UMH Properties Inc. priced an upsized $125 million issue of 6.75% series C cumulative redeemable preferred stock.

A trader said the issue was not free as of mid-morning, though he said the issue was “trading at $25.05 in the Street.”

Another trader pegged the preferreds at $24.95 bid, par offered.

The deal came in line with price talk but was increased from an expected $100 million.

BMO Capital Markets Corp. and Stifel Nicolaus & Co. Inc. ran the books.

A portion of the proceeds will be used to redeem the company’s outstanding 8.25% series A cumulative redeemable preferreds (NYSE: UMHPrA).

Those preferreds were down 3 cents at mid-morning, trading at $25.37.

Among other recent deals, Two Harbors Investment Corp.’s $250 million of 7.625% series B fixed-to-floating rate cumulative redeemable preferred stock began trading on the New York Stock Exchange under the ticker symbol “TWOPrB.”

The issue was at $25.38 in early dealings, down a dime from the open.

The deal priced on July 12, coming tighter than the 7.75% price talk and upsized from $75 million.

Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and Keefe Bruyette & Woods Inc. are the joint bookrunners.

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