Midday Commentary: Vornado, CapLease announce offerings; NextEra active; NuStar frees

By Andrea Heisinger

New York, Jan. 16 - Two new offerings of preferred shares were announced Wednesday - one by Vornado Realty Trust and another from CapLease, Inc.

Vornado is pricing an offering of perpetual series L preferreds of undetermined size, with talk in the 5.5% area, a trader said late morning. The New York-based real estate investment trust is contributing proceeds to its operating partnership for general corporate purposes.

A smaller offering of 7.25% series J perpetual cumulative preferreds is planned by CapLease, a real estate investment trust for commercial properties.

A source said that there was no news of the size on the deal, the proceeds of which will be used to redeem 8.125% series A preferreds from the company.

The source added that it was "a little unusual" for the company to set the coupon in the sale announcement, but "in these little deals, they sometimes do best efforts. It looks like they need to raise about $75 million, so we'll see what happens."

There was no sign of a sale from PennantPark Investment Corp. that was announced on Tuesday. The company plans to price $25-par preferreds due Feb. 1, 2025.

In trading, Tuesday's pricing from NextEra Energy Capital Holdings Inc. was holding its own.

The company sold $425 million of 5% $25-par series J shares due Jan. 15, 2073, which were seen trading at $24.70 to $24.75, a trader said at midday.

A new 7.625% fixed-to-floating-rate subordinated note from NuStar Logistics LP freed to trade and was quoted at $25.30 to $25.35. NuStar priced $350 million of the hybrids on Monday.

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