Preferred calendar builds; Public Storage comes at tight end of talk; Oxford Lane prices

By Stephanie N. Rotondo

Phoenix, Nov. 20 – The preferred stock new issue calendar was filling up Thursday.

Public Storage launched and priced a $175 million offering of 5.875% series A cumulative perpetual preferreds.

The deal was originally talked in a 5.875% to 6% area.

A source early in the session saw a gray market quote on the offering of $24.75 bid, $24.87 offered.

Post-pricing, a trader placed the issue at $24.75 bid, $24.80 offered.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and UBS Securities LLC are underwriting the deal, with each allocated 1.75 million shares.

On the heels of the new deal, all of Public Storage’s preferreds were lower, though not overly active.

The 5.375% series V cumulative preferreds (NYSE: PSAPV) were 9 cents weaker at $23.68.

Meanwhile, Oxford Lane Capital Corp. priced $25 million additional 8.125% series 2024 term preferreds.

The company initially sold $28 million of the preferreds on June 30.

Following the announcement, the monthly paying preferreds (Nasdaq: OXLCN) declined 48 cents, or 1.89%, to $24.89 in early trades.

The paper closed at par, down 37 cents, or 1.46%.

Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. are the joint bookrunning managers. Co-managers are BB&T Capital Markets and Maxim Group LLC.

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