Preferred calendar builds; Public Storage comes at tight end of talk; Oxford Lane prices

By Stephanie N. Rotondo

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

Public Storage launched and priced a $175 million offering of 5.875% series A cumulative perpetual preferreds.

The deal was originally talked in a 5.875% to 6% area.

A source early in the session saw a gray market quote on the offering of $24.75 bid, $24.87 offered.

Post-pricing, a trader placed the issue at $24.75 bid, $24.80 offered.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and UBS Securities LLC are underwriting the deal, with each allocated 1.75 million shares.

On the heels of the new deal, all of Public Storage’s preferreds were lower, though not overly active.

The 5.375% series V cumulative preferreds (NYSE: PSAPV) were 9 cents weaker at $23.68.

Meanwhile, Oxford Lane Capital Corp. priced $25 million 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.

The paper closed at par, down 37 cents, or 1.46%.

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 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 at mid-morning. The issue was seen closing at $24.92, up 6 cents on the day.

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.

Overall, the preferred stock market was trending higher for most of the day. But toward the end of the day, the market faded and the Wells Fargo Hybrid and Preferred Securities index closed down 3 basis points.

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