TravelCenters prices as calendar expected to heat up; Public Storage issue freed to trade

By Stephanie N. Rotondo

Phoenix, Jan. 8 - There continued to be talk that the new issue calendar was going to be heating up - and soon - on Tuesday.

"We continue to hear that a busy calendar is coming," a trader said, noting that a "possible utility" deal could come on Wednesday.

TravelCenters of America LLC said it was planning an offering of at least $35 million of $25-par senior notes due 2028. The issue eventually came upsized, with $100 million of notes being priced at 8.25%.

Pricing was in line with talk.

But a trader said he hadn't seen much regarding the new issue.

As for Public Storage, its new $450 million issue of 5.2% series W cumulative redeemable perpetual preferreds freed to trade on Tuesday.

The deal priced Monday.

By the bell, the overall preferred market was seen up pretty decently on the day. One market source, referring to one preferred index, said that the market was up as much as 26 bps.

"It was a pretty steady march upwards," he said.

TravelCenters upsized, prices

TravelCenters of America brought $100 million of 8.25% $25-par senior notes due 2028 on Tuesday.

The deal came upsized from $35 million.

Still, the non-rated new issue wasn't making much hay.

"[Citigroup Global Markets Inc.] is leading the deal," he said. "I think they are keeping a tight leash on it until the [recent Public Storage deal] cleans up."

He saw a $24.60 bid in the gray market early in the session, though he opined that it was "probably higher" as of midday.

"It's a small deal, big coupon," he added.

TravelCenters is a Newton, Mass.-based operator and franchisor of travel centers primarily along the U.S. highway system.

Public Storage frees up

Public Storage's new 5.2% series W cumulative redeemable perpetual preferreds freed from the syndicate on Tuesday.

The deal came Monday.

Paper was trading at $24.85, a trader reported at midday.

After the close, another market source quoted the issue at $24.83 bid, $24.88 offered.

Public Storage is a Glendale, Calif.-based real estate investment trust focused on storage solutions.

Allstate still rising

Allstate Corp.'s recent 5.1% fixed-to-floating rate debentures due 2053 got a huge boost in Tuesday trading as it was once again among the day's most actively traded issues.

The deal priced Thursday and freed up on Monday.

A market source pegged the paper at $25.85, up 25 cents day over day.

Allstate is a Northbrook, Ill.-based insurance company.

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