Morning Commentary: Spark preferreds down; Global Medical REIT up to par

By Abigail W. Adams

Portland, Me., Jan. 24 – Spark Energy, Inc.’s 8.75% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were down in early trading Wednesday. The preferreds slipped 35 cents, or 1.38%, to $24.94.

Spark priced a $50.5 million, or 2 million share, add-on to the $25-par preferred stock at a public offering price of $25.25 after the market close Tuesday.

B. Riley FBR, Janney Montgomery Scott, BB&T Capital Markets and Ladenburg Thalmann are joint bookrunners for the deal, which carries a greenshoe of 250,000 shares.

The preferred stock was initially priced in March 2017 with $35 million sold. Additional preferreds have been issued through an at-the-market program, raising the total to $42.6 million.

The preferreds will carry a dividend of 8.75% until April 15, 2022 and then switch to a dividend of Libor plus 657.8 basis points.

The Houston, Texas-based retail energy services company’s preferred stock is listed on Nasdaq under “SPKEP.”

Global Medical REIT’s 7.5% perpetual series A cumulative redeemable preferred stock reached par in large gains in early trading on Wednesday. The $25-par preferreds were up 27 cents, or 1.09%, to $25 early in the session.

Global Medical priced the series A preferred stock in September 2017.

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