Morning Commentary: Global Net Lease prices new issue; Alabama Power deal already at a premium

By Stephanie N. Rotondo

Seattle, Sept. 7 – The deals continued to slowly flow into the preferred stock market early Thursday.

Global Net Lease Inc. priced its first preferred issue, a $100 million offering of 7.25% series A cumulative redeemable preferred stock.

BMO Capital Markets Corp. and Stifel Nicolaus & Co. Inc. ran the books.

There is a $15 million over-allotment option.

The preferreds will be redeemable on or after Sept. 12, 2022 at par plus accrued dividends.

The issue can also be called upon a delisting event or change of control.

The company has applied to list the preferred shares on the New York Stock Exchange under the symbol “GNLPrA.”

Proceeds from the deal will be contributed to the company’s operating partnership in exchange for a new class of preferred units. The proceeds contributed to the operating partnership will be used for the purchase of additional properties and for general corporate purposes.

Meanwhile, Pennsylvania Real Estate Investment Trust announced plans to sell series D cumulative redeemable perpetual preferred stock.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. are the joint bookrunners.

The preferreds become redeemable in September 2022 at par plus accrued dividends. The issue can also be called upon a change of control.

The new securities will be listed on the NYSE under the ticker symbol “PEIPrD.”

The issuer is a Philadelphia-based real estate investment trust.

As for deals from earlier in the week, Alabama Power Co.’s $250 million of 5% class A cumulative preferred stock was doing well in active trading.

The paper was at $25.50 at mid-morning, which was unchanged from Wednesday’s close, but up from $25.34 at the open on Thursday.

The deal came Tuesday prior to the market’s close. It soon freed, trading under the temporary ticker “ABBLP.”

Initial price talk was 5.125%.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.

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