UMH Properties deal comes upsized, closes above par; Two Harbors lists on NYSE; GSEs mixed

By Stephanie N. Rotondo

Seattle, July 21 – Preferred stock investors were eyeing the primary space on Friday, as UMH Properties Inc. priced $125 million of 6.75% series C cumulative redeemable preferred stock.

The deal freed to trade in the afternoon, according to a market source.

The source saw the new issue ending the day at $25.07.

Ahead of freeing, a trader said the issue was “trading at $25.05 in the Street.”

Another trader pegged the preferreds at $24.95 bid, par offered at mid-morning.

Upon freeing, the deal was assigned a temporary ticker, “UMHPP.”

The deal came in line with price talk but was increased from an expected $100 million.

BMO Capital Markets Corp. and Stifel Nicolaus & Co. Inc. ran the books.

A portion of the proceeds will be used to redeem the company’s outstanding 8.25% series A cumulative redeemable preferreds (NYSE: UMHPrA).

Those preferreds were down a nickel, trading at $25.34.

Among other recent deals, Two Harbors Investment Corp.’s $250 million of 7.625% series B fixed-to-floating rate cumulative redeemable preferred stock began trading on the New York Stock Exchange under the ticker symbol “TWOPrB.”

The issue was at $25.33 at the closing bell, a loss of 15 cents from the opening level of $25.48.

The deal priced on July 12, coming tighter than the 7.75% price talk and upsized from $75 million.

Morgan Stanley & Co. LLC, UBS Securities LLC, J.P. Morgan Securities LLC and Keefe Bruyette & Woods Inc. are the joint bookrunners.

Away from recent deals, Fannie Mae and Freddie Mac preferreds were active but mixed.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were steady at $6.27. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) – the more active of the two issues, with over 1.8 million shares trading – slipped 7 cents, or 1.18%, to $5.88.

There was no fresh news out on the GSEs to cause the movement.

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