Midday Commentary: CapLease, Vornado bring new deals; JMP to launch note offering

By Stephanie N. Rotondo

Phoenix, Jan. 17 - New issues were churning out early in Thursday's session as CapLease Inc. and Vornado Realty Trust priced previously announced deals.

JMP Group Inc. also announced plans for a new issue.

CapLease brought $21.25 million of 7.25% series C cumulative redeemable preferreds. The shares were sold at a discounted price of $23.75 per share.

"It's a real dog," a trader said. "I think it was a best-efforts deal."

The trader added that he had not seen any markets on the new issue.

"Apparently all you had to do was sign up to get shares," he said.

Meanwhile, Vornado priced a $300 million offering of 5.4% series L cumulative redeemable preferreds.

A trader quoted the issue at $24.60 bid, $24.68 offered, down from earlier bids of $24.70.

"They were pretty aggressive in pricing," the trader said. "I was surprised they were able to push it," especially considering that other Vornado issues were trading with higher yields.

"It should stay a little soft for awhile," he remarked.

For its part, JMP Group said it was planning a sale of $25-par senior notes due 2023.

Price talk is around 8%, according to a trader.

The trader pegged the notes at $24.60 bid, $24.85 offered in the midday gray market.

And, Public Storage's most recent issue - $450 million of series J cumulative redeemable preferreds that priced Jan. 7 - was admitted to the New York Stock Exchange on Thursday.

The ticker symbol is "PSAPW." Paper was trading at $24.97 as of midafternoon, down a nickel from the previous close and off a penny from opening levels.

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