Morning Commentary: Jernigan Capital hits the market; preferreds up, Ashford down

By Abigail W. Adams

Portland, Me., Jan. 22 – The preferreds market opened the week on a positive note with the Wells Fargo Hybrid & Preferred Securities Financial Index up 15 bps in early trading. The iShares US Preferred Stock ETF was also up by 0.10%.

Jernigan Capital, Inc.’s 7% series B cumulative redeemable perpetual preferred stock hit the market Monday after pricing after market close Friday. The preferred stock freed for OTC trading shortly after pricing under the temporary symbol “JERCP.”

The preferred stock was quoted at $24.75 with no bids or offers early in Monday’s session.

Jernigan 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.

While the overall market was up, Ashford Hospitality Trust, Inc.’s 7.5% series H cumulative redeemable preferred stock was down. The series H preferred stock slipped 70 cents, or 2.84%, to $23.95 in early trading.

Ashford’s 7.375% series G cumulative preferred stock also slipped 25 cents, or 1.02%, to $24.30.

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