Morning Commentary: Compass Diversified Holdings frees to trade; Colony NorthStar in focus

By Abigail W. Adams

Portland, Me., March 7 – Compass Diversified Holdings’ new preferred stock offering freed to trade on OTC markets under the temporary ticker “CMPDP.”

The new 7.875% series B fixed-to-floating rate cumulative preferred shares were seen trading at $24.60 early in Wednesday’s session.

Compass priced $100 million, or 4 million shares, of the $25-par series B cumulative preferred shares on Tuesday.

The series B preferred stock will have a fixed dividend of 7.875% until April 30, 2028 when it will switch to a floating rate of Libor plus 498.5 basis points.

The preferred shares will be listed for trade on the New York Stock Exchange under the ticker “CODIPrB.”

The market indicators for the preferreds space were mostly flat early Wednesday with low trading volume early in the session.

However, Colony NorthStar Inc.’s preferreds remained in focus with some rebounding after their nosedive last week.

Colony NorthStar’s 7.125% series H cumulative redeemable preferred stock traded up to $22.82, an increase of 7 cents or 0.29%, early in Wednesday’s session.

The series H preferreds traded down to $22.52, a decrease of $1.25, on March 1 after the company released its earnings report and announced it was slashing dividend payments on common stock.

Colony NorthStar’s 7.125% series J cumulative redeemable perpetual preferred stock traded up to $23.03, an increase of 7 cents or 0.30%, early in Wednesday’s session. The series J preferreds traded down to $22.29, a decrease of $1.44, on March 1.

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