Medley to bring $25-par notes; Northern Trust holds around par; Vornado dips on redemption

By Stephanie N. Rotondo

Seattle, Aug. 2 – The preferred stock market primary calendar continued to add deals on Tuesday, with Medley LLC’s planned $25 million sale of $25-par unsecured notes due 2026.

The New York-based asset management firm said that it would use proceeds from the offering to repay outstanding amounts under a senior secured term loan facility with Credit Suisse AG, Cayman Islands Branch, under which $95 million is outstanding. The company also noted that it could issue up to a total of $100 million of the new notes in order to pay down the debt.

Price talk was in the 6.875% area, a market source reported. Incapital LLC, FBR Capital Markets, JonesTrading and Ladenburg Thalmann & Co. Inc. are running the books.

A market source said pricing would come Wednesday morning.

Meanwhile, Northern Trust Corp.’s $500 million of 4.6% $1,000-par fixed-to-floating rate series D noncumulative preferreds – a deal priced Monday – were pegged at 99.875 bid, 100.125 offered early in the day. By the bell, a source had the issue in a par to 100.125 context.

In the secondary space, Vornado Realty Trust said late Monday that it intended to redeem all of its $226.5 million outstanding 6.875% series J cumulative redeemable preferreds (NYSE: VNOPJ).

Come Tuesday, the issue was trading off 84 cents, or 3.19%, at $25.33, on above-average trading volume.

The redemption will occur on Sept. 1 at par plus accrued dividends.

Vornado is a New York-based real estate investment trust.

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