Global Net Lease, TCF Financial tap market; Pennsylvania REIT on deck; Carlyle frees

By Stephanie N. Rotondo

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

Global Net Lease Inc. priced its first preferred issue ahead of the open, 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.

TCF Financial Corp. also brought a deal, a $175 million sale of 5.7% series C noncumulative preferreds.

Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners.

The issue becomes redeemable on Dec. 1, 2022 at par plus accrued dividends. The issue may also be redeemed upon a regulatory capital treatment event.

The new preferred shares will be listed on the NYSE under the ticker symbol “TCFPrD.”

The Wayzata, Minn.-based bank holding company intends to use proceeds, along with cash on hand, to redeem some or all of its 7.5% series A noncumulative preferreds (NYSE: TCFPrB).

As for the 7.5% preferreds, they closed the day down 9 cents at $25.13.

Pennsylvania Real Estate Investment Trust also announced a deal on Thursday, though pricing details were not available as of 6:15 p.m. ET.

The Philadelphia-based real estate investment trust plans to offer series D cumulative redeemable perpetual preferred stock.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, JPMorgan and Stifel 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.”

Like TCF, PREIT plans to use proceeds to redeem some or all of its $115 million principal amount of 8.25% series A cumulative redeemable preferreds (NYSE: PEIPrA). Any remaining funds will be used for general corporate purposes, including to fund the company’s anchor replacement and redevelopment pipeline.

The series A preferreds finished the session off 3 cents at $25.09.

As for deals from earlier in the week, the Carlyle Group’s $400 million of 5.875% series A perpetual preferred units topped the day’s trading volume, with over 2 million of the units being exchanged.

The issue freed to trade around midday. Its temporary ticker symbol is “CGGGP.”

The paper closed at par.

The deal came Wednesday tighter than the 6% price talk.

Morgan Stanley, BofA Merrill Lynch, UBS, Wells Fargo and JPMorgan led the deal.

Also, Alabama Power Co.’s $250 million of 5% class A cumulative preferred stock was lower in active trading.

The preferreds ended the session at $25.35, down 15 cents from the previous day’s close of $25.50.

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, JPMorgan, Morgan Stanley and Wells Fargo were the joint bookrunners.

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