Colony NorthStar comes upsized; Urstadt prices at tight end of talk; PS Business frees

By Stephanie N. Rotondo

Seattle, Sept. 13 – The preferred stock market’s new issue calendar continued to build up on Wednesday, as two real estate investment trusts were added.

Colony NorthStar Inc. sold $275 million of 7.125% series J cumulative redeemable preferreds.

The deal came upsized from $100 million and in line with the 7.125% price talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and RBC Capital Markets LLC are the joint bookrunners.

The company intends to use proceeds from the deal to redeem some or all of its 8.25% series B cumulative redeemable preferreds (NYSE: CLNSPrB) and its 8.875% series C cumulative redeemable preferreds (NYSE: CLNSPrC).

Both of those issues were unchanged to weaker on the heels of the new issue.

The Bs were off 7 cents at $25.28, while the Cs were steady at $25.30.

Meanwhile, Urstadt Biddle Properties Inc. brought a $100 million sale of 6.25% series H cumulative redeemable preferred stock.

Price talk was 6.25% to 6.375%.

BMO Capital Markets Corp. and Wells Fargo Securities LLC are running the books.

Like Colony, Urstadt plans to use proceeds to redeem another outstanding preferred issue, the 7.125% series F cumulative redeemable preferred stock (NYSE: UBPPrF).

Also like Colony, the issue eyed for redemption was trading lower, falling 16 cents to $25.36.

As for deals from Tuesday’s business, PS Business Parks Inc.’s $200 million of 5.25% series X cumulative preferreds freed to trade in early dealings, getting a temporary ticker of “PSBBP.”

The preferreds ended the day at $24.79, up 9 cents. About 5.18 million of the preferreds changed hands.

Paper was trading at $24.75 at mid-morning, with over 2 million shares already being exchanged.

Price talk was 5.25% to 5.375%. The deal was upsized from $100 million.

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

Meanhwile, two new listings occurred on Wednesday, as Pennsylvania Real Estate Investment Trust’s $120 million of 6.875% series D cumulative redeemable perpetual preferred stock and Global Net Lease Inc.’s $100 million of 7.25% series A cumulative redeemable preferred stock were admitted to the New York Stock Exchange.

The PREIT ticker is “PEIPrD.” Global Net’s symbol is “GNLPrA.”

Both deals came Sept. 7.

After listing, the PREIT preferreds traded up 7 cents to $24.70. Global Net’s preferreds firmed 6 cents to hit par.

© 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.