Morning Commentary: Primary calendar adds Public Storage, Oxford Capital; State Street gets symbol

By Stephanie N. Rotondo

Phoenix, Nov. 20 – The preferred stock new issue calendar was filling up on Thursday.

Public Storage announced an offering of series A cumulative perpetual preferreds, which were talked in a 5.875% to 6% area.

“It will probably come around 5.75%, we’re guessing,” a source said.

The source saw a gray market quote of $24.75 bid, $24.87 offered.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and UBS Securities LLC are underwriting the deal.

Meanwhile, Oxford Lane Capital Corp. is selling additional 8.125% series 2024 term preferreds.

The company initially sold $28 million of the preferreds on June 30.

Following the announcement, the monthly paying preferreds (Nasdaq: OXLCN) declined 48 cents, or 1.89%, to $24.89 in early trades.

Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. are the joint bookrunning managers. Co-managers are BB&T Capital Markets and Maxim Group LLC.

Also, Resource Capital Corp. said it had entered into an agreement with MLV & Co. LLC for an at-the-market offering of up to $75 million 8.5% series A cumulative redeemable preferred stock (NYSE: RSOPA), the 8.25% series B cumulative redeemable preferred stock (NYSE: RSOPB) and the 8.625% fixed-to-floating rate series C cumulative redeemable preferred stock (NYSE: RSOPC).

As of Nov. 17, there were approximately 1.07 million series A shares outstanding, 4.88 million of the series B shares outstanding and 4.8 million series C shares outstanding.

In recent deals, State Street Corp.’s $750 million of 6% series E noncumulative preferreds – a deal that priced Tuesday and freed early Wednesday – was assigned a temporary reporting symbol, according to a trader.

The symbol is “SRTRP.”

The trader quoted the issue at $24.88 bid, $24.92 offered.

CoBank ACB’s $300 million of 6.2% $100-par fixed-to-floating rate perpetual preferreds – a deal that priced Wednesday – were seen at 100.25 bid, 100.5 offered.

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