Morning Commentary: Government Properties set to free; American Homes gets temporary symbol

By Stephanie N. Rotondo

Seattle, May 20 – Recently priced preferred stock issues remained in focus in early Friday trading.

Though no new issues were announced during the session, a trader said that “people are saying [the deal flow] is just going to keep going.”

From Thursday’s business, Government Properties Income Trust’s $300 million of 5.875% $25-par senior unsecured notes due 2046 were expected to free at some point Friday.

A trader pegged the issue at $24.75 bid, $24.85 offered at mid-morning.

W.R. Berkley Corp.’s $290 million of 5.75% $25-par subordinated debentures due 2056 – a deal priced Wednesday – were meantime seen in a $24.93 to $24.97 context.

Also from Wednesday’s business, LaSalle Hotel Properties’ $150 million of 6.3% series J cumulative preferreds were offered at $25.05.

And, American Homes 4 Rent’s $225 million of 6.5% series D cumulative redeemable preferreds were placed at par bid, $25.14 offered.

The issue, which came early Tuesday after being announced Monday, is trading under the temporary ticker symbol “AMHHP.”

Overall, the preferred market was attempting to regain some of the territory lost in the last couple of days over concerns about a possible interest rate hike in June or July.

Still, the day’s early gains were modest, as the Wells Fargo Hybrid and Preferred Securities index ticked up just 5 basis points.

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