Public Storage prices $325 million of 6.5% preferreds; Ally remains busy, gets stronger

By Stephanie N. Rotondo

Portland, Ore., April 5 - The preferred stock market "had a very good tone" during Tuesday trading, according to a market source.

"Most bank names, U.S. and domestic, grinded higher on decent volume," the source said.

The firm tone might have also had something to do with a new issue that was expected to price Tuesday from Public Storage. After the bell, terms on the $325 million issue - more than double what the market had been expecting - came out.

The Glendale, Calif.-based storage company said in a regulatory filing that it issued $325 million of 6.5% series Q perpetual cumulative preferred shares.

The market was expecting a $150 million issue priced between 6.5% and 6.625%.

The preferreds were sold at par of $25. The deal has a $48.75 million greenshoe.

Proceeds from the sale will be used to redeem the company's 7.25% series I cumulative preferred shares at par of $25 plus accrued dividends.

Before the deal priced, Public Storage's other preferred issues were trading mostly higher, according to a market source.

The series M and P preferreds were stronger at $25.18 bid, $25.25 offered and $25.22 bid, $25.23 offered, respectively.

The series K preferred shares, however, traded down to $25.23 bid, $25.29 offered.

Away from the new issue, the market continued to focus on Ally Financial Inc.'s preferreds. One trader opined that the 8.5% series B preferreds could be ready to fly, given how far the 8.125% series A preferreds have come since being sold in early February.

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