Morning Commentary: Seritage Growth deal on tap; preferreds soften; Wells Fargo flat

By Cristal Cody

Tupelo, Miss., Dec. 7 – Seritage Growth Properties joined the deal pipeline on Thursday with an offering of series A cumulative redeemable preferred shares.

The company announced plans to price the preferred stock, which has a liquidation preference of $25.00 per share.

Preferred stocks were modestly weaker over the morning.

The Wells Fargo Hybrid and Preferred Securities index was 2 basis points softer.

The U.S. iShares Preferred Stock ETF was down less than 1 bp.

Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) were flat at $25.60 early Thursday.

The preferred stock is not expected to be called on its first optional call date, according to a market source. Wells Fargo’s 8% preferreds have a call date of Dec. 15, 2017.

In new issue trading, Vornado Realty Trust’s 5.25% split-rated series M cumulative redeemable perpetual preferred stock edged up 1 cent to $24.71 over the morning in over-the-counter trading under the temporary symbol “VNNDP.”

The company sold $300 million of the $25.00-par preferreds (Baa3/BBB-/BB+) on Monday.

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