Jernigan Capital prices on cheap end of talk; recent deals lose ground

By Abigail W. Adams

Portland, Me., Jan. 19 – The preferred stock primary market rounded out the week with a fourth new deal pricing after the market close.

Jernigan Capital, Inc. sold $37.5 million, or 1.5 million shares, of 7% series B cumulative redeemable perpetual preferred stock at par of $25 after the end of trading on Friday.

The pricing came at the cheap end of talk for a dividend of 6.75% to 7% and smaller than the initially launched 2 million share deal size.

Raymond James and Morgan Stanley are joint bookrunners for the offering, which carries a greenshoe of $5,625,000, or 225,000 shares.

Jernigan intends to list the series B preferred stock on the New York Stock Exchange under the symbol “JCAPPrB.”

The 7% series B cumulative redeemable perpetual preferred stock freed for OTC trading shortly after pricing under the temporary symbol “JERCP.”

While the Memphis, Tenn.-based real estate investment trust’s new preferred stock will not hit the secondary market until Monday, the three deals that priced over the course of the week had mixed results in trading during Friday’s session and all were a little below issue.

UMH Properties Inc. 6.375% series D cumulative redeemable preferred stock, trading under the temporary ticker “UMHZP,” were marginally weaker on Friday.

The Freehold Township, N.J.-based real estate investment trust specializing in manufactured housing communities priced 2 million shares, or $50 million, of $25 par series D cumulative redeemable preferred stock after the market close Wednesday. The deal freed for trade shortly after.

The preferreds traded in a range of $24.45 to $24.75 during Friday’s session before closing the day at $24.56, a decrease of 1 cent, or 0.04%.

Teekay Offshore Partners LP’s recently priced 8.875% series E fixed-to-floating rate cumulative redeemable preferred units regained some footing after slipping 7 cents, or 0.28%, to $24.53 in early trading Friday.

The units ended Friday’s session flush with Thursday’s closing price of $24.60.

The Hamilton, Bermuda-based provider of transportation, storage, towing, and installation maintenance and safety services to the oil industry priced $115 million of the par of $25 units after the market close on Tuesday.

The series E perpetual cumulative redeemable preferred units have a fixed dividend of 8.875% until Feb. 15, 2025 and will then switch to a floating rate of Libor plus a spread of 640.7 bps.

Teekay intends to list the preferred stock on the New York Stock Exchange under the symbol “TOOPrE.” The notes were freed for OTC trading Wednesday under the temporary ticker “TEOZF.”

Saul Centers Inc.’s depositary shares representing the company’s recently priced 6.125% series D cumulative redeemable preferred stock were also down on Friday.

The depositary shares slipped 24 cents, or 0.97%, to $24.51. The Bethesda, Md.-based real estate investment trust priced $75 million of series D 6.125% cumulative redeemable preferred stock Tuesday to be sold as $25-par depositary shares.

The depositary shares will be listed for trading on the New York Stock Exchange under the symbol “BFSPrD.” The depositary shares freed for OTC trading Wednesday afternoon under the temporary ticker “SAUZP.”

Note: Thursday’s edition of the Prospect News Preferred Stock Daily incorrectly stated that UMH Properties Inc.’s 6.375% series D cumulative redeemable preferreds had not yet freed for OTC trading. The preferreds freed shortly after pricing on Wednesday evening.

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