Midday Commentary: Public Storage's new issue frees to trade; Oxford Lane offering term preferreds

By Stephanie N. Rotondo

Phoenix, May 29 - Preferred stocks were still firm on Thursday, though there was a little bit of weakness seeping in around mid-morning.

Early in the session, the Wells Fargo Hybrid and Preferred Securities Index was up 9 basis points. Just an hour later, it was up 7 bps.

Public Storage's $250 million of 6% series Z cumulative preferreds - an upsized deal that came Wednesday - freed to trade, according to a trader.

He quoted the issue at par bid, $25.02 offered.

The Glendale, Calif.-based real estate investment trust had originally said it would sell just $150 million of the shares.

BofA Merrill Lynch, Morgan Stanley & Co LLC, UBS Securities LLC and Wells Fargo Securities LLC ran the books.

Meanwhile, Oxford Lane Capital Corp. announced plans to sell series 2024 term preferred shares.

The preferreds mature on June 30, 2024 and become callable on June 30, 2017.

A trader said he hadn't seen anything in the gray market regarding the new issue.

"It's a small deal," he said.

Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. are the joint bookrunners.

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