Preferred stocks firm; UMH plans add-on; Gabelli comes upsized; KKR, Huntington deals list

By Stephanie N. Rotondo

Seattle, March 28 – The preferred stock market was heading higher in Monday trading, though overall volume was somewhat limited following the long holiday weekend.

Additionally, European markets remained closed for Easter on Monday, further dampening liquidity.

The Wells Fargo Hybrid and Preferred Securities index traded up by 27 basis points by the bell. The index was up 9 bps at mid-morning.

In the primary space, UMH Properties Inc. announced plans to sell an additional $30 million of its 8% series B cumulative redeemable preferreds (NYSE: UMHPB).

The company initially sold $45.03 million of the preferreds in October 2015.

CSCA Capital Advisors LLC is acting as placement agent.

The securities were trading off 94 cents, or 3.49%, to $26.01.

Also, the Gabelli Equity Trust Inc. said it planned to price $50 million of series J cumulative redeemable preferreds, with price talk around 5.625%.

The deal later came upsized at $80 million and priced at par to yield 5.45%.

UBS Securities LLC and Wells Fargo Securities LLC are running the books.

Paper was seen at $24.65 bid in early trading but pushed up to $24.95 bid, $25.05 offered in the gray prior to pricing.

Meanwhile, KKR & Co. LP’s 6.75% series A noncumulative perpetual preferred units began trading on the New York Stock Exchange on Monday.

The ticker symbol is “KKRPA.” The $300 million issue priced March 10 and another $45 million was sold as part of a greenshoe on March 17.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC ran the books.

The units closed at $25.15, off from opening levels $25.17. The paper traded as high as $25.30 and one trader saw the units offered at $25.20 in early trades.

Also listed Monday were Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferred stock.

Those preferreds were admitted to the Nasdaq Global Select Market under the ticker “HBANO.”

The deal came March 14 via BofA Merrill Lynch, Morgan Stanley, UBS Securities and Wells Fargo.

The preferreds were pegged at $25.45 bid, $25.55 offered at mid-morning.

“Those moved up nicely,” a trader said.

At the bell, the preferreds were seen at $25.48, unchanged from the open. The paper traded as high as $25.79.

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