KKR upsizes sale of series B preferred units; Reinsurance Group, Pebblebrook begin trading on NYSE

By Stephanie N. Rotondo

Seattle, June 13 – The preferred stock new issue market was starting up again on Monday after taking a break on Friday.

KKR & Co. LP brought $155 million of 6.5% series B perpetual preferred units ahead of the close.

The deal came at the tight end of initial price talk, set in the 6.625% area, and was upsized from $100 million.

Prior to pricing, a trader said the units were quoted at $24.70 bid, par offered in the early gray market. Later in the day, a market source said he heard the issue was around par.

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

Meanwhile, two recently priced deals began trading on the New York Stock Exchange on Monday.

From June 1, Reinsurance Group of America Inc.’s $400 million of 5.75% $25-par fixed-to-floating rate subordinated debentures due June 15, 2056 listed under the ticker “RZB.”

The paper was trading at $26.12 at mid-morning. A trader quoted the debentures at $26.10 bid, $26.30 offered.

By the bell, the issue had jumped all the way to $26.52.

Also listed were Pebblebrook Hotel Trust’s $125 million of 6.375% series D cumulative redeemable preferreds, an issue from June 2.

The ticker is “PEBPD.” The preferreds were at $25.20 at the close, up from opening levels of $25.16.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.