Morning Commentary: Ashford Hospitality, Cedar Realty, Stellus Capital add deals to calendar

By Stephanie N. Rotondo

Seattle, Aug. 16 – The deals continued to flow into the preferred stock market on Wednesday, with three planned offerings hitting the tape.

Ashford Hospitality Trust Inc. announced a $50 million offering of series H cumulative preferred stock, with price talk in a range of 7.5% to 7.625%.

UBS Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

The company plans to use proceeds to, among other things, redeem some or all of its 8.55% series A cumulative preferreds (NYSE: AHTPrA) or its 8.45% series D cumulative preferreds (NYSE: AHTPrD).

In early trading, the series A preferreds were off 21.56 cents at $25.5103. The series D paper was down 15.13 cents at $25.4477.

Cedar Realty Trust Inc. also added a deal to the calendar, a $75 million offering of series C cumulative redeemable preferred stock.

Price talk is 6.375% to 6.5%, according to a market source.

Raymond James & Associates Inc. and KeyBanc Capital Markets are running the books.

Like Ashford, the company intends to use the funds to redeem an outstanding issue, the 7.25% series B cumulative redeemable preferreds (NYSE: CDRPrB).

That issue was off 8 cents at mid-morning, trading at $25.11.

And, Stellus Capital Investment Corp. said it was selling $30 million of $25-par notes due 2022.

Price talk is 5.75%.

Keefe Bruyette & Woods Inc. is the bookrunner.

The Houston-based business development company said it would use proceeds to redeem its 6.5% $25-par notes due 2019 (NYSE: SCQ).

The notes were off 35 cents, or 1.39%, at $25.16 at mid-morning.

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