Morning Commentary: Hersha plans new issue; AXIS Capital gets temporary ticker; Navios rises

By Stephanie N. Rotondo

Seattle, Nov. 1 – The preferred stock primary market continued to churn out deals on Tuesday as the first trading day of November got underway.

Hersha Hospitality Trust said it was selling $75 million of series E cumulative redeemable preferred stock, with price talk at 6.5% to 6.625%.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Wells Fargo Securities LLC and Citigroup Global Markets Inc. are running the books.

At mid-morning, a trader said he saw a $24.70 bid in the gray market for the new issue, though no offers.

Meanwhile, AXIS Capital Holdings Ltd.’s $550 million of 5.5% series E noncumulative preferreds – a deal priced Monday – were quoted at $24.88 bid, $24.90 offered.

The paper was also assigned a temporary trading symbol, according to a trader. The symbol is “AXHHF.”

BofA Merrill Lynch, Morgan Stanley, Wells Fargo and UBS Securities LLC led that deal.

Away from new issues, Navios Maritime Holdings Inc.’s preferreds were bouncing up after the company announced it had extended an exchange offer for the securities to 11:59 p.m. ET on Nov. 7.

The Monaco-based shipping company also said it is waiving a minimum tender condition.

The 8.75% series G cumulative redeemable preferreds (NYSE: NMPG) were up $1.07, or 18.45%, at $6.87 at mid-morning. The 8.625% series H cumulative redeemable preferreds (NYSE: NMPH) were up 79 cents, or 13.27%, at $6.75.

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