UMH to price new deal; Teekay, Saul Centers free to trade; GasLog going strong

By Abigail W. Adams

Portland, Me., Jan. 17 – The primary market for preferred stock remains active with UMH Properties Inc. planning to price 2 million shares, or $50 million, of $25 par series D cumulative redeemable perpetual preferred stock.

BMO Capital Markets and Stifel, Nicolaus & Co. are joint bookrunners for the offering, which carries a greenshoe of $7.5 million, or 300,000 shares.

The preferred stock from the Freehold Township, N.J.-based real estate investment trust specializing in manufactured housing communities is non-callable until January 2023, except upon a change of control or delisting event, or for tax purposes.

Starting January 2023, the preferreds may be redeemed at par plus accrued interest, according to the preliminary prospectus.

UMH’s existing 8% series B preferred stock was down about 2 cents, or 0.06%, at $27.08 on Wednesday. The 6.75% series C preferred stock was down 19 cents, or 0.76%, to $26.10.

Among recent deals, Teekay Offshore Partners LP 8.875% series E fixed-to-floating rate cumulative redeemable preferred units freed for OTC trading Wednesday under the temporary ticker “TEOZF.”

The units, which priced after the market close on Tuesday at par of $25, were trading at $24.66 early Wednesday. The units closed Wednesday at $24.65.

Morgan Stanley & Co., UBS Securities, J.P. Morgan Securities and Stifel, Nicolaus & Co. were joint bookrunners for the offering, which carries a greenshoe of $17.25 million, or 690,000 units, according to the term sheet.

The series E perpetual cumulative redeemable preferred units will have a fixed dividend of 8.875% until Feb. 15, 2025 and will then switch to a floating rate of Libor plus a spread of 640.7 bps.

Saul Centers Inc. 6.125% series D cumulative redeemable preferred stock also freed for OTC trading Wednesday.

The depositary shares began trading under the temporary ticker “SAUZP” in the late afternoon and had no recorded trades at market close.

Proceeds for the deal, which priced after the market close on Tuesday, will be used to redeem Saul Centers 6.875% series C cumulative redeemable preferred stock. The series C preferred stock had $180 million outstanding as of Sept. 30. The series C preferred stock slipped by about 4 cents, or 0.15%, to close Wednesday at $25.08.

GasLog Partners LP’s 8.2% series B cumulative redeemable perpetual fixed-to-floating rate preference units continue to go strong, as the underwriters exercised their greenshoe option, lifting the size of the deal to $115 million. The units were up 3 cents, or 0.12%, to end Wednesday’s session at $25.40.

The units have seen steady increases since they were priced at par of $25 on Jan. 9. While a decrease from last week, when the units hit a high of $25.49, they are still trading firmly.

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