Public Storage's new preferreds list on NYSE; Essex expected to list soon; Vornado deal prices

By Stephanie N. Rotondo

Portland, Ore., April 14 - A preferred stock trader expressed optimism Thursday that the preferred market, though still on the quiet side, was getting ready to ramp up.

"It's a good sign, we've had six new deals in a week and a half," he noted. "Now we just need to get some big ones."

Public Storage's new issue of preferreds listed on Thursday, and a trader said that Essex Property Trust Inc.'s recently priced issue of 7.125% preferreds is slated to list "sometime soon."

Meanwhile, Vornado Realty Trust's new issue of 6.875% preferreds - the deal priced Thursday - was trading a bit weaker than it was Wednesday.

Public Storage lists

Public Storage's $325 million issue of 6.5% series Q perpetual cumulative preferreds officially listed on the New York Stock Exchange on Thursday under the symbol "PSAPRQ."

A trader quoted the preferreds at $24.54 bid, $24.55 offered.

"It's a good name, not a bad deal," he said. However, he opined that the shares were trading "a little rich."

According to the NYSE, the shares traded down 12 cents, or 0.49%, to close at $24.46, the low of the day. The preferreds had opened at $24.62 and traded as high as $24.75.

The Glendale, Calif.-based storage company priced the issue on April 5. Proceeds from the offering will be used for a redemption.

Essex to list soon

A trader said Essex Property Trust's new 7.125% perpetual cumulative preferred stock - a deal that priced April 8 - "should list sometime soon."

He said there was a $25.00 bid for the paper.

The Palo Alto, Calif.-based real estate investment trust sold $65 million of the preferreds, up from the expected amount of $50 million. Like Public Storage, Essex will use the funds for a preferred stock repurchase.

Vornado prices deal

Among other new REIT issues, Vornado Realty priced a $175 million issue of 6.875% series J cumulative redeemable preferred stock.

The shares were sold at $25.00 each, and a trader said they were trading at $24.75 in the gray market, down from $24.80 the day before.

Proceeds from the sale will be contributed to New York-based Vornado's operating partnership in exchange for preferred units. The operating partnership will use the funds for general business purposes including the redemption or repurchase of preferred stock and units.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.