Morning Commentary: RAIT Financial notes free to trade; new Gramercy preferreds heading higher

By Stephanie N. Rotondo

Phoenix, Aug. 13 – The preferred stock market was starting the midweek trading session with a firm tone.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at mid-morning.

RAIT Financial Trust’s $70 million issue of 7.125% $25-par senior notes due 2019 freed to trade early in the day, according to a trader.

The deal priced Monday.

After freeing, the notes were moving higher, as the trader pegged the securities at $24.75 bid, $24.87 offered.

Deutsche Bank Securities Inc., Barclays, Keefe Bruyette & Woods and Credit Suisse Securities (USA) LLC were the joint bookrunners on the non-rated deal.

Meanwhile, Gramercy Property Trust Inc.’s $87.5 million of 7.125% series B cumulative redeemable perpetual preferreds – a deal that came Tuesday – were seen at less 22 cents bid, less 15 cents offered, a trader said.

That deal came upsized from $75 million and tightened from initial talk around 7.25%.

BofA Merrill Lynch and Morgan Stanley & Co. LLC led the deal.

The new issue calendar continued to build up as well on Wednesday. Global Ship Lease Inc. announced its intent to price series B cumulative redeemable perpetual preferred stock.

Morgan Stanley is running the books.

The London-based containership charter company said it will use the proceeds from the offering to repurchase at a discount all of its outstanding series A preferreds.

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