Public Storage brings upsized deal at revised price talk; Valley National, Annaly in focus

By Stephanie N. Rotondo

Seattle, July 31 – A new preferred stock deal hit the tape on Monday as the market looked to close out the month.

Public Storage sold $300 million of 5.05% series G cumulative preferreds in a deal that was upsized from $100 million and came in line with revised price talk.

Initial price talk was 5.125% but was later revised to 5.05%.

After the dividend talk was revised, a trader said the issue was quoted at $24.70 bid, $24.75 offered in the gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are running the books.

In response to the new issue news, the company’s 5.15% series F cumulative preferreds (NYSE: PSAPrF) declined a penny to $25.21.

The new issue becomes redeemable on Aug. 9, 2022.

As for deals from the previous week, Valley National Bancorp’s new $100 million of 5.5% series B fixed-to-floating rate noncumulative preferreds were seen moving up to $26.15 from $25.81 at the previous close.

The deal priced Thursday and freed from the syndicate on Friday. It is trading under a temporary ticker, “VLYYP.”

Keefe Bruyette & Woods Inc. was the bookrunner.

Meanwhile, Annaly Capital Management Inc.’s $700 million of 6.95% series F fixed-to-floating rate cumulative redeemable preferreds – a deal priced Tuesday – remained actively traded.

The preferreds were up at $24.90 at mid-morning but settled back in to $24.85 by the bell.

Still, that was up 3 cents from Friday’s close.

The deal freed Wednesday afternoon and began trading under a temporary ticker, “ANNPP.”

Morgan Stanley, J.P. Morgan Securities LLC, UBS Securities, RBC Capital Markets, Citigroup Global Markets Inc. and Keefe Bruyette & Woods were the bookrunners.

Overall, the secondary preferred stock space ended the day with a mixed tone, following along with the broader markets.

The Wells Fargo Hybrid and Preferred Securities index closed 10 basis points better for the day. However, the U.S. iShares Preferred Stock ETF was down 5 bps.

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