Texas Capital, Glimcher Realty price new issues; Hanover's notes free; recent deals hit NYSE

By Stephanie N. Rotondo

Phoenix, March 21 - It was a "mostly up day" for the preferred stock market on Thursday, a market source said.

However, he added that it was "not [up] by much."

The source also noted that "liquidity was mostly limited to new issues."

Two more new issues entered the arena on Thursday.

Texas Capital Bancshares Inc. said it was issuing series A noncumulative perpetual preferred stock. Glimcher Realty Trust also announced an offering, a sale of series I cumulative redeemable preferred shares. Price talk on that deal was around 6.875%, according to the trader.

The Texas Capital deal came shortly before the close, with $150 million preferreds pricing at par to yield 6.5%. The Glimcher deal came in line with price talk, with $90 million shares being issued.

From Wednesday business, Hanover Insurance Group, Inc.'s $175 million of 6.35% subordinated debentures due 2053 freed up early in the session. The issue topped the day's most actively traded list.

Away from recent deals, Corporate Office Properties Trust's 7.625% series J cumulative redeemable preferreds were also trading actively following news out late Wednesday regarding a call of the preferreds.

Texas Capital prices

Texas Capital Bancshares brought $150 million of 6.5% series A noncumulative perpetual preferreds on Thursday.

Pricing was in line with price talk.

At midday, there was a gray market quote of $24.88 bid, $24.95 offered for the new issue.

After pricing, a trader pegged the preferreds at $24.80 bid, $24.90 offered.

Proceeds will be used for general corporate purposes.

Texas Capital is based in Dallas.

Glimcher too

Glimcher Realty priced a new deal after the market closed, selling $90 million of 6.875% series I cumulative redeemable preferreds.

A market source pegged the paper at $24.72 bid, $24.78 offered.

The Columbus, Ohio-based real estate investment trust will use proceeds to redeem some of its 8.125% series G cumulative redeemable preferreds, the company said in its prospectus.

That issue (NYSE: GRTPI) closed down 7 cents at $25.54.

Hanover's new notes free

Hanover Insurance Group's newly priced 6.35% $25-par debentures due 2053 freed from the syndicate early in Thursday trading. The deal priced Wednesday.

Shortly after freeing, a trader saw the notes trading "above par," pegging them at $25.05 bid.

At the close, a market source said the notes were the most actively traded security of the day, with well over 1.5 million trading. He placed the notes at $25.14.

The Worcester, Mass.-based property and casualty insurance company intends to use proceeds for general corporate purposes and working capital, which may include stock repurchases.

Recent deals list

Among other recent deals, Prudential Financial Inc.'s $710 million issue of 5.7% $25-par junior subordinated notes due 2053 officially listed on the New York Stock Exchange under the symbol "PRH." The deal priced March 7.

The notes were holding at $24.89 as of midday. At the end of the day, they had moved up to $24.91.

Also listed were Pebblebrook Hotel Trust's $90 million of 6.5% series C cumulative redeemable preferreds, a deal that came March 11.

The ticker symbol is "PEBPC." Paper was trading at $24.50 at midday, up from opening levels of $24.35. However, the issue finished around $24.44.

Summit Hotel Properties Inc.'s $75 million of 7.125% series C cumulative redeemable preferreds listed under the ticker symbol "INNPC." The issue priced March 13.

The preferreds were at $25.08 at midday, down from $25.11 at the open. The closing price was $24.99.

Corporate Office active on call

Late Wednesday, Corporate Office Properties announced a redemption of its 7.625% series J cumulative redeemable preferreds. Come Thursday, the issue was among the day's most actively traded preferreds.

The shares (NYSE: OFCPJ) were off 11 cents at midday at $25.51. By the close, the paper was trading at $25.49, down 13 cents on the day.

The redemption date is April 22. The call price is $25.0424.

The REIT is based in Columbia, Md.

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