Ashford prices upsized issue; Cedar Realty comes at wide end of talk; Stellus taps market

By Stephanie N. Rotondo

Seattle, Aug. 16 – The deals continued to flow into the preferred stock market on Wednesday, with three offerings hitting the tape.

Ashford Hospitality Trust Inc. announced – and priced – an $85 million offering of 7.5% series H cumulative preferred stock.

Initial price talk was in a range of 7.5% to 7.625%.

The deal came upsized from $50 million

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

The company plans to use proceeds to, among other things, redeem some or all of its 8.55% series A cumulative preferreds (NYSE: AHTPrA) or its 8.45% series D cumulative preferreds (NYSE: AHTPrD).

In response, the series A preferreds were off 32 cents, or 1.23%, at $25.41. The series D paper was down 15 cents at $25.45.

Cedar Realty Trust Inc. also added a deal to the calendar, a $75 million sale of 6.5% series C cumulative redeemable preferred stock.

Price talk was 6.375% to 6.5%, according to a market source.

Raymond James & Associates Inc. and KeyBanc Capital Markets are running the books.

Like Ashford, the company intends to use the funds to redeem an outstanding issue, the 7.25% series B cumulative redeemable preferreds (NYSE: CDRPrB).

And, Stellus Capital Investment Corp. said it sold $42.5 million of 5.75% $25-par notes due 2022.

The deal came in line with price talk but was upsized from $30 million.

Keefe Bruyette & Woods Inc. is the bookrunner.

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