Morning Commentary: Sotherly Hotels to price baby bonds; preferreds up; Wells Fargo down

By Abigail W. Adams

Portland, Me., Feb. 5 – After spending most of last week in the red, the preferreds market was up in early trading on Monday.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.45 basis points. The U.S. iShares Preferred Stock ETF was up 0.04%.

The primary market, which was also quiet last week with only one baby bond offering pricing, began Monday with a new deal announcement.

Sotherly Hotels LP plans to price an offering of three-year fixed-rate $25-par notes.

Sandler O’Neill + Partners, LP and Stephens Inc. are joint bookrunners for the offering, which carries a greenshoe of 15% of the offering size, according to a company release.

The notes are freely callable on or after a specified date in 2019 at 101% of the principal amount plus accrued interest, according to the preliminary prospectus.

In trading, Wells Fargo & Co.’s non-cumulative perpetual 8% class A preferred stock series J was down 4 cents, or 0.19%, to $25.74.

Wells Fargo depositary preferreds representing 1/1000th of the company’s 5.7% series W non-cumulative perpetual preferreds were down 15 cents, or 0.60%, to $24.81.

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