RBS, HSBC redemptions in focus; American Homes 4 Rent prices; La Salle Hotel up next

By Stephanie N. Rotondo

Seattle, May 17 – Redemption news from Monday continued to be a factor in Tuesday’s trading moves in the preferred stock market.

“There were a bunch of calls yesterday,” a trader said referring to Royal Bank of Scotland Group plc’s announcement that it would redeem three series of trust securities, as well as HSBC USA Inc.’s call of three series of preferreds.

All told, the redemptions will take out $4.55 billion of U.S.-listed preferred securities.

RBS paper was active and slightly better on Tuesday. The 6.08% noncumulative guaranteed trust preferred securities (NYSE: RBSPG) were steady at $25.27, though the 5.9% noncumulative guaranteed trust preferred securities (NYSE: RBSPE) were a penny higher at midday, trading at $25.27 as well.

American Homes 4 Rent priced a $225 million sale of 6.5% series D cumulative redeemable preferreds early in the session.

The deal was first announced Monday, with price talk around 6.625%.

A trader said the issue was trading at par bid, $25.07 offered.

Also in the primary arena, LaSalle Hotel Properties announced plans to sell at least $100 million of series J cumulative redeemable preferreds.

Price talk is 6.375% to 6.5%. Wells Fargo Securities and BofA Merrill Lynch are running the deal.

A market source said the deal was slated to come Wednesday.

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