Morning Commentary: Government Properties selling $25-par notes; W.R. Berkley frees to trade

By Stephanie N. Rotondo

Seattle, May 19 – The primary preferred stock market continued to see deals flow on Thursday as Government Properties Income Trust announced plans to sell at least $100 million of $25-par senior unsecured notes due 2046.

Price talk was in the 6% area, according to a market source. Pricing is expected later in the day.

The deal is coming via BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Meanwhile, W.R. Berkley Corp.’s $290 million of 5.75% $25-par subordinated debentures due 2056 – a deal priced Wednesday – had freed to trade by mid-morning, a trader said.

He pegged the issue at $24.95.

Morgan Stanley, BofA, UBS and Wells Fargo ran that deal as well.

Also from Wednesday’s business, LaSalle Hotel Properties’ $150 million of 6.3% series J cumulative preferreds were seen at $24.96 bid, no offers.

The issue came early Wednesday via Wells Fargo and BofA. Initial price talk was between 6.375% and 6.5%.

In new listings, Sunstone Hotel Investors Inc.’s $75 million of 6.45% series F cumulative redeemable preferreds began trading on the New York Stock Exchange on Thursday.

The ticker symbol is “SHOPF.” The deal came May 10.

The paper was trading at $25.70 at mid-morning, down from $25.75 at the open.

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