Morning Commentary: Seaspan on tap; Medley slated to price; Legg Mason, Landmark free to trade

By Stephanie N. Rotondo

Seattle, Aug. 4 – The preferred stock new issue pipeline showed no signs of letting up on Thursday, as Seaspan Corp. added a deal to the calendar.

The Hong Kong-based shipping company said it was selling $75 million of series H cumulative redeemable preferreds, with price talk in an 8% to 8.125% range.

A trader saw the issue at $24.82 bid, $24.92 offered in the early gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC and Citigroup Global Markets Inc. are running the books.

Proceeds will be used for general corporate purposes.

Meanwhile, a trader commented that Medley LLC’s $25 million sale of $25-par unsecured notes due Aug. 15, 2026 would come around midday, “or so I was told.”

That deal was first announced on Tuesday and was expected to price on Wednesday. Alas, it did not.

Of issues that have already priced, Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due 2056 freed up at mid-morning, according to a trader.

Just prior to freeing, a trader saw the paper at $24.95 bid, par offered.

Landmark Infrastructure Partners LP’s $40 million of 7.9% series B cumulative redeemable preferred units were also pegged at $24.95 bid, par offered.

The units freed from the syndicate in early trading.

Both issues came Wednesday, and both were upsized.

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